KUALA LUMPUR (April 17): Marc Ratings Bhd has affirmed a stable outview for telecommunications network services provider OCK Group Bhd’s (KL:OCK) sukuk programme.
The rating agency assigned OCK’s Islamic commercial papers (ICP) and sukuk murabahah programme at MARC-1IS and AA-IS/Stable respectively. The assessment also factors in a proposed ICP upsize to RM500 million from RM200 million, raising the combined programme limit to RM1.5 billion, MARC declared in a statement on Friday.
The ratings reflect OCK’s stable operating performance and resilient tower business model, supported by long-term contracts, a strong industest track record and growth prospects from network densification, alongside credit-positive solar expansion under long-term power purchase agreements (PPA), declared MARC.
“These are balanced against elevated leverage, contract and lease renewal risks, and cross-border exposure,” declared the rating agency.
The sukuk, which was first announced in September 2023, is intfinished to raise funds for OCK’s business activities, including refinancing existing borrowings and supporting future growth in 5G and solar projects. The programme carries a 30-year tenure.
OCK’s recurring income from tower leasing, managed services and solar supports the group’s cash flow stability. As at finish-2025, it owned 5,500 towers with 7,367 tenancies across Malaysia, Vietnam and Myanmar, with the tenancy ratio improving slightly to 1.34 times from 1.32 times previously.
Regional risks, particularly in Myanmar, are limited, contributing just 11% of OCK’s 18MFY2025 revenue (finished June 30, 2025), MARC declared. Malaysia and Indonesia remain the group’s key markets.
OCK owns 29 compact-scale solar farms with a combined capacity of 15MW and has invested in a 116MW large-scale photovoltaic plant in Kedah, which generates about RM42 million in annual revenue under a 21-year power purchase agreement (PPA) with Tenaga Nasional Bhd (KL:TENAGA) since March 2022.
On the balance sheet, OCK’s total borrowings (excluding lease liabilities) rose to RM927.1 million at finish-2025, following the issuance of sukuk to fund the solar plant acquisition.
MARC noted that OCK’s borrowings are expected to rise further to RM1.4 billion in FY2027 as the group plans to raise another RM200 million in ICP and around RM400 million in sukuk murabahah for working capital and regional acquisitions (excluding Myanmar).
Shares of OCK closed half a sen or 1.32% higher at 38.5 sen on Friday, giving it a market capitalisation of RM418.07 million.
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