KUALA LUMPUR (Aug 19): Cypark Resources Bhd (KL:CYPARK) has secured RM1.3 billion in Islamic financing facilities from MBSB Bank Bhd to refinance its renewable energy (RE) assets in solar and waste-to-energy projects.

Under the facilities, MBSB Bank will refinance Cypark’s established renewable energy assets in solar and waste-to-energy.

As at end-April, the group’s long-term borrowings stood at RM1.24 billion while short-term borrowings amounted to RM343.25 million, on the back of a cash position of RM171.52 million.

Meanwhile, it also issued perpetual sukuk — an instrument with no maturity date and usually classified as equity — amounting to RM535 million as at end-April.

Its finance costs for the financial year ended April 30, 2025 surged 68% to RM56.05 million from RM33.44 million a year earlier.

In a filing with Bursa Malaysia on Tuesday, Cypark said that the financing package comprises a mix of term loans and revolving credit facilities that are structured to strengthen Cypark’s capital base, optimise cash flow and support its future growth. The facilities carry tenures ranging from eight to 17 years.

In addition, Cypark will place funds into MBSB Bank’s first Sustainable Term Deposit-i, a deposit product that channels financing into environmentally and socially responsible projects, the company said in a statement on Tuesday.

Cypark chairman Tan Sri Abdul Wahid Omar said the refinancing of the group’s debt alleviates a key financial exposure and positions the company to deliver sustainable growth while optimising shareholder returns.

“We value MBSB Bank not only as a financier but as a strategic partner who shares our vision for a low-carbon economy for Malaysia. Their confidence in our capabilities and commitment to the nation’s energy transition have been instrumental in achieving this milestone. We look forward to working closely with MBSB Bank to deliver robust solutions for firm renewable energy supply to the grid.”

Cypark is an integrated RE and environmental solutions provider, with pioneering projects in solar, biogas and waste-to-energy. These include the country’s first SMART Waste-to-Energy facility in Port Dickson, Negeri Sembilan. Presently, the group has 400MW of installed RE capacity.

Shares of Cypark closed up half a sen or 0.59% at 85 sen on Tuesday, giving the company a market capitalisation of RM695.34 million.