Thursday, Feb 05, 2004
MARC has affirmed the rating of AAAID on GDC Putrajaya Sdn Bhd’s (GDC Putrajaya) Al-Bai’ Bithaman Ajil Islamic Debt Securities. The rating affirmation reflects the significance of the project in providing the supply of chilled water to all Government premises in Putrajaya; the superior credit strength of the main offtakers, that is the Government and Putrajaya Holdings Sdn Bhd (PJH); and the strong backing from the ultimate shareholder, PETRONAS.
Under the Agreement for Supply of Chilled Water entered into between GDC Putrajaya and the Government of Malaysia, payment for the chilled water supplied comprises a fixed demand charge (based upon a maximum cooling load demand of the respective facilities) and a variable charge (based upon actual quantity of chilled water consumed). The rates are increased by 9% every three years from 1999.
The completion of Stage 1 of Plant 2 in August 2002, to supply chilled water to the Ministry of Finance, led to a near 40% improvement in chilled water sales to RM28.1 million. Demand charge remained as the major revenue contributor (64%), lending an element of stability to the revenue stream. Revenue from variable charge (36%) is expected to increase in line with the full development and increasing occupancy of buildings in Putrajaya.
Plant ‘s 1 load factor has stabilized at 35%, reflecting the occupancy of buildings in Putrajaya presently. In early May 2003, another 3,880 Refrigerant Tonne (RT) stand-alone chiller plant was completed to meet the supply of chilled water to Putrajaya’s Convention Centre for the Organization of Islamic Conference Summit in October 2003. Stage 2 of Plant 2 was completed in August 2003, while stages 3 and 4 are currently under commissioning and are expected to be completed in March 2004.
Natural gas supply risk is mitigated through the 15-year agreement with PETRONAS, that will be automatically renewed on a yearly basis, thereafter. Operational risk is considered low given that the equipments are technically proven and operated by experienced personnel from the parent company, Gas District Cooling (M) Sdn Bhd under an Operating Services Agreement.
GDC Putrajaya expects to achieve a net profit position from FY2006 onwards with the completion of various plants that will attract sufficient revenue to cover depreciation charges and financing costs.
Debt servicing capacity is somewhat enhanced with the maintenance of a RM4.5 million liquidity buffer, that will be available to meet the redemption of either secondary or primary BaIDS. GDC Putrajaya’s debt leverage as at end March 2003 was 0.89 times, after the drawdown of RM145.30 million under the BaIDS Facility. The company’s capital structure benefits from the backing of its ultimate holding company, PETRONAS.
Under the Agreement for Supply of Chilled Water entered into between GDC Putrajaya and the Government of Malaysia, payment for the chilled water supplied comprises a fixed demand charge (based upon a maximum cooling load demand of the respective facilities) and a variable charge (based upon actual quantity of chilled water consumed). The rates are increased by 9% every three years from 1999.
The completion of Stage 1 of Plant 2 in August 2002, to supply chilled water to the Ministry of Finance, led to a near 40% improvement in chilled water sales to RM28.1 million. Demand charge remained as the major revenue contributor (64%), lending an element of stability to the revenue stream. Revenue from variable charge (36%) is expected to increase in line with the full development and increasing occupancy of buildings in Putrajaya.
Plant ‘s 1 load factor has stabilized at 35%, reflecting the occupancy of buildings in Putrajaya presently. In early May 2003, another 3,880 Refrigerant Tonne (RT) stand-alone chiller plant was completed to meet the supply of chilled water to Putrajaya’s Convention Centre for the Organization of Islamic Conference Summit in October 2003. Stage 2 of Plant 2 was completed in August 2003, while stages 3 and 4 are currently under commissioning and are expected to be completed in March 2004.
Natural gas supply risk is mitigated through the 15-year agreement with PETRONAS, that will be automatically renewed on a yearly basis, thereafter. Operational risk is considered low given that the equipments are technically proven and operated by experienced personnel from the parent company, Gas District Cooling (M) Sdn Bhd under an Operating Services Agreement.
GDC Putrajaya expects to achieve a net profit position from FY2006 onwards with the completion of various plants that will attract sufficient revenue to cover depreciation charges and financing costs.
Debt servicing capacity is somewhat enhanced with the maintenance of a RM4.5 million liquidity buffer, that will be available to meet the redemption of either secondary or primary BaIDS. GDC Putrajaya’s debt leverage as at end March 2003 was 0.89 times, after the drawdown of RM145.30 million under the BaIDS Facility. The company’s capital structure benefits from the backing of its ultimate holding company, PETRONAS.