KUALA LUMPUR (June 25): Jentayu Sustainables Bhd’s (KL:JSB) unit, developing its flagship hydropower plant in Sabah, has raised RM10.8 million via a redeemable preference shares placement to a company owned by Sabah state-owned Yayasan Sabah to fund the project.
Yayasan Sabah’s Inno Hydropower Padas Sdn Bhd has subscribed to 10.8 million redeemable cumulative preference shares (RPS) in Jentayu's 70%-owned Oriole Hydro Padas Sdn Bhd at RM1 apiece, according to a bourse filing on Thursday.
A subscription agreement was inked between Oriole and Inno Hydropower for the exercise.
“The proceeds from the issuance of the RPS shall be utilised for the funding of the equity contribution towards development of a 162MW run-of-river hydropower plant to be constructed in Sabah by [Oriole Hydro],” said Jentayu.
Besides Jentayu, Oriole Hydro's other shareholders are Sabah Electricity Sdn Bhd (20%) and Yayasan Sabah (10%).
Earlier this year, the hydropower plant, dubbed Project Oriole, had its commercial operation date delayed to April 30, 2030, versus its original date of end-December 2029.
The RPS carries a dividend of 16% of the subscription amount per annum. Unpaid dividends shall be cumulative and accrued on a non-interest-bearing basis as long as the RPS remain outstanding.
Its tenure runs until the maturity of Project Oriole’s power purchase agreement or 40 years from its commercial operation date, whichever is later. The RPS’ redemption is also at the option of Oriole Hydro, said Jentayu.
Inno Hydropower is owned by PetroSabah Sdn Bhd, which in turn is owned by Yayasan Sabah’s Innoprise Corp Sdn Bhd.
Shares in Jentayu ended half a sen or 1.92% lower at 25.5 sen on Thursday, valuing the company at RM138.84 million.