1.  RENEWABLE ENERGY POWER PURCHASE AGREEMENT

The Board of Directors of G Capital Berhad (“GCAP” or “the Company”) wishes to announce that Kundur Hydro R E Sdn Bhd (“KHRE”), a 74.64%-owned subsidiary of the Company had on 7 November 2022 signed a Renewable Energy Power Purchase Agreement (“REPPA”) with Tenaga Nasional Berhad [Company Registration No. 199001009294(200866-W)] (“TNB”).

KHRE, the Feed-in Approval Holder (“FiAH”), has succeeded to enter into a REPPA with TNB ahead of the due date of 11 February 2023.

Earlier, on 11 May 2022, KHRE has been granted a feed-in approval by the Sustainable Energy Development Authority Malaysia (“SEDA”) in respect of 2.0 MW high-head mini-hydropower plant situated on Sungai Geroh (“the Plant”) in the vicinity of Kampar District, Perak.

The REPPA will be for a period of Twenty-One (21) years from the commercial operation date, which is scheduled to start from 11 May 2027. Pursuant to the REPPA, TNB will purchase electricity from KHRE at Feed-in Tariff (“FiT”) rate of RM0.2461 per kilowatt-hour (“KWh”).

2.  INFORMATION ON TNB

TNB is a public limited company listed on Main Market of Bursa Malaysia Securities Berhad, incorporated and domiciled in Malaysia and having its registered address at Pejabat Setiausaha Syarikat, Tingkat 2, Ibu Pejabat Tenaga Nasional Berhad, No.129, Jalan Bangsar, 59200 Kuala Lumpur, Malaysia.

TNB and its subsidiaries are primarily involved in the business of the generation, transmission, distribution and sales of electricity.

3.  FINANCIAL EFFECTS OF THE REPPA

The Group is targeting to complete and commission the Plant on or before 11 May 2027, envisaging a potential revenue of RM53.09 million to the Group over a span of 21 years based on the FiT rate of RM0.2461 per kilowatt-hour and estimated annual production of 10.27 gigawatt hours of electricity to be generated from the plant.

Save for the above, the REPPA is not expected to have any material impact on the earnings and net assets of the Group for the financial year ending 31 December 2022.

4.  DIRECTORS AND SUBSTANTIAL SHAREHOLDERS’ INTEREST

None of the Directors or major shareholders of GCAP and persons connected with them has any direct or indirect interests, in the REPPA.

5.  STATEMENT BY DIRECTORS

The Board of GCAP is of the opinion that the REPPA is in the best interest of the Group.

6.  APPROVAL REQUIRED

The REPPA does not require the approval of shareholders of the Company, Bursa Malaysia Securities Berhad or Securities Commission Malaysia.

This announcement is dated 14 November 2022.