Thursday 20 Jun 2024
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KUALA LUMPUR (April 15): Renewable energy solution provider G Capital Bhd has partnered with Hong Kong-based CCIAM Logistic Company Limited to raise RM325 million for its small hydropower projects in Pahang.

In a bourse filing on Monday, the group announced that its wholly-owned subsidiary Northern Star Hydropower Sdn Bhd has entered into a Memorandum of Understanding (MOU) with CCIAM Logistic to set forth mutual intentions for the project.

It said a full-term agreement is expected within 60 days from the effective date of the MOU, which will include the roles of the parties in the project and a success fee payable to CCIAM Logistic as capital-raising lead arranger.

CCIAM Logistic is fully owned by CCIAM Future Energy Limited, a public-listed company on the Hong Kong Stock Exchange primarily involved in the provision of energy-saving solutions and loan financing business.

In a statement, G Capital’s executive chairman Tan Sri Affendi Buang said the partnership would serve as a gateway for global green capital to invest in the company’s small hydropower portfolio.

“CCIAM Future Energy’s expertise and presence at HKEX bridge the gap between China and international markets. This strategic partnership is poised to accelerate Malaysia’s transition to clean energy by attracting foreign direct investment, fueling economic growth, and propelling the nation towards carbon neutrality,” he said in a statement.

G Capital has been in the red for the past two financial years ended on Dec 31. For FY2023, the company reported a net loss of RM9.76 million compared with a net loss of RM18.68 million in FY2022. Its revenue was down 2.3% to RM26.26 million from RM26.88 million.

According to its bourse filing, the loss was mainly attributable to provisions for foreseeable losses in its transportation and investment holding divisions. Its hydropower division, on the other hand, has yet to generate any revenue.

As at Dec 31, 2023, the group reported total cash and cash equivalents of RM2.23 million.

Shares of G Capital rose by half a sen or 1.35% to 37.5 sen at Monday’s close, valuing the group at RM121.96 million.

Edited ByEsther Lee
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