AIZO Group Berhad (“AIZO” or the “Company“), today announced that its subsidiary, Wawasan Demi Sdn. Bhd. (“WDSB”), has on 18 June 2026 executed the Facilities Agreements with Bank Pembangunan Malaysia Berhad (“BPMB”) in respect of Islamic financing facilities of up to RM346.19 million, marking a significant step forward in the Company’s expansion within the renewable energy sector.
The facilities will be utilised to support the development of a Large-Scale Solar Photovoltaic (“LSSPV”) plant in Kampar, Perak (“the Project”), reinforcing AIZO’s strategic positioning in Malaysia’s growing clean energy landscape.
The total facilities comprise a Tawarruq Asset Financing (“TWA”) facility of up to RM256.0 million, alongside bank guarantee facilities totalling approximately RM90.19 million, which will primarily support project execution requirements and contractual obligations under the Power Purchase Agreement (“PPA”) with Tenaga Nasional Berhad (“TNB”).
The TWA facility will be used to part-finance up to 80% of the Engineering, Procurement, Construction and Commissioning (“EPCC”) costs of the Project, while the bank guarantee facilities will serve as performance guarantees in favour of TNB for project delivery milestones.
Dato Abang Abdillah Izzarim, the Executive Chairman of AIZO commented, “The securing of these financing facilities from Bank Pembangunan Malaysia represents a key milestone in advancing our renewable energy initiatives. The Kampar LSSPV project is a strategic asset that will contribute to AIZO’s long-term growth, while supporting Malaysia’s transition towards sustainable energy. With a substantial portion of the project cost now secured, we are well positioned to accelerate implementation and execution. This development also strengthens the Company’s recurring income potential through long-term power generation under the TNB power purchase framework.”
The Company views the Project as a critical component of its diversification strategy, complementing its existing civil engineering and infrastructure capabilities while expanding its footprint in the renewable energy segment. Upon completion and commissioning, the solar plant is expected to provide stable and predictable income streams, underpinned by long-term contractual arrangements.
While the facilities will increase the Company’s gearing levels upon full utilisation, AIZO maintains a prudent approach to capital management and expects the Project to contribute positively to future earnings as it transitions into the operational phase.
This development complements the Company’s multi-exercise corporate plan approved by Bursa Malaysia Securities Berhad on 17 April 2026 and subsequently endorsed by shareholders at the Extraordinary General Meeting held on 29 May 2026. With the proposed private placement, share capital reduction and rights issue with free detachable warrants now approved, AIZO is well-positioned to strengthen its capital structure and enhance financial flexibility. Collectively, these corporate exercises are expected to provide funding support for the implementation of the LSSPV project, current and future construction projects, digitalisation initiatives and other strategic growth opportunities, while supporting the Group’s long-term growth and value creation objectives.
Looking ahead, AIZO remains focused on executing the Kampar solar project efficiently while continuing to explore opportunities within the renewable energy and infrastructure space, in line with national energy transition policies and growing demand for clean power solutions.
