MARC Ratings has withdrawn its preliminary rating of AA-_IS on Sparks Energy 1 Sdn Bhd’s
RM220.0 million proposed ASEAN Green SRI Sukuk. Sparks Energy 1 is the funding vehicle for two 30MWac solar projects in Kuala Muda,
Kedah and Machang, Kelantan.

We note that construction of the solar power plants is currently being funded by bank loans
which are expected to be repaid from proceeds of the proposed sukuk. MARC Ratings understands that the construction of the solar
power plants has been delayed mainly due to the impact from the COVID-19 pandemic. The Kuala Muda plant achieved commercial
operation date (COD) on March 22, 2022 from a revised target of December 31, 2021 while the Machang plant’s COD has been
revised to September 2022 from January 31, 2022.

MARC Ratings had highlighted in its press announcement dated
November 30, 2021, that the proposed sukuk programme would be set up upon achieving COD for both plants and that the
preliminary rating only considers the operational phase of the projects. The rating withdrawal now reflects our concern
that the legal disputes between project sponsors over the sponsorship structure of the two solar power project companies
would be protracted and may affect the completion of the Machang plant as well as impact the operational
phase of the plants.