1. INTRODUCTION

Pursuant to Part C of Chapter 9, Paragraph 9.04 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of AIZO Group Berhad ("AIZO" or the "Company") is pleased to announce that Wawasan Demi Sdn Bhd, a 63%-owned subsidiary of Coral Energy Sdn. Bhd., which in turn is a wholly-owned subsidiary of the Company  ("WDSB") has, on 18 June 2026, executed the Facilities Agreements with Bank Pembangunan Malaysia Berhad ("BPMB" or "the Bank") pursuant to a letter of offer dated 7 April 2026, in respect of Islamic banking facilities totalling RM346,191,000.00 ("the Facilities").

2. DETAILS OF THE ISLAMIC FINANCING FACILITIES

2.1 Type and the maximum aggregate principal amount of the Facilities

The Facilities comprise a maximum aggregate principal amount of up to RM346,191,000.00 (Ringgit Malaysia Three Hundred Forty-Six Million One Hundred Ninety-One Thousand only), broken down as follows:

(a) Tawarruq Asset Financing ("TWA") Facility of up to RM256,000,000.00;

(b) Bank Guarantee-i 1 ("BG-i 1") Facility of up to RM89,991,000.00; and

(c) Bank Guarantee-i 2 ("BG-i 2") Facility of up to RM200,000.00.

2.2 Purpose

The Facilities will be utilised for the Large Scale Solar Photovoltaic (LSSPV) Plant located in Kampar, Perak ("the Project"):

• TWA: To part-finance up to RM256.0 million or with a margin of financing of up to 80% from the Engineering, Procurement, Construction and Commissioning ("EPCC") Cost for the Project, whichever is lower.

• BG-i 1 & BG-i 2: To serve as performance guarantees favouring Tenaga Nasional Berhad ("TNB") in relation to the Delay Payment and SSP Works respectively, as stipulated in the Power Purchase Agreement ("TNB PPA").

   

2.3 Repayment Period

TWA: Up to nineteen (19) years from the date of first utilization of the facility

2.4 Securities

The Facilities are secured by, amongst others, the following principal securities:

(a)          A Master Facility Agreement;

(b)         A debenture incorporating fixed and floating charges over all present and future assets of WDSB both movable and immovable;

(c)          First Party First Legal Charge over a lease registered on eleven (11) parcels of leasehold land bearing Lot No. of PT31803, PT31810, PT31811, PT31813, PT31814, PT31815, PT31821, PT31822, PT31823, PT31824 and PT31825 with total aggregate sizes of about 177.01-hectares all located in Mukim Kampar, District of Kampar, State of Perak (*Project Land") in relation to lease agreement entered between Liputan Setia Sdn Bhd (Registration No.: 200301006946 (609366-X)) ("Lessor/Landowner") and WDSB on 19 March 2025 ("Lease Agreement") including any amendments, supplements, extensions, or variations thereto;

(d)         First Party Deed of Assignment(s) over all rights, titles, interests and benefits under the TNB PPA, EPCC Contract, Operation & Maintenance Agreement, Performance Guarantee/Bond issued or to be issued by any financial institutions in favour of WDSB under the EPCC Contract and relevant Takaful/Insurance policies related to the Project (during construction period & during operation of the Project);

(e)          Joint and Several Guarantees by key Director/key individuals of WDSB; and

(f)          Corporate Guarantees to be provided by the corporate shareholders of WDSB, to be issued in respect of, and extend to, the full amount of the facilities granted, namely AIZO Group Berhad (being the ultimate holding company of WDSB), Coral Energy Sdn. Bhd. (a wholly-owned subsidiary of AIZO, holding a direct 63% interest in WDSB), Ambang Asli Sdn. Bhd. (being the direct shareholder of WDSB holding 19% interest), and Bertam Solar Power Sdn. Bhd. (being the direct shareholder of WDSB holding 18% interest); and

(g)          any other security documents deemed necessary and/or may be required by BPMB and/or as advised by BPMB's solicitors.

3. ASSOCIATED RISKS

Risks associated with the above Facilities are Interest Rate Risk, Credit Risk and Liquidity Risk. The Group is subject to Interest Rate Risk when interest rates change which may affect the Group's bottom line. The credit risk is, in part, determined by its debt to equity ratio as rising borrowing will increase the overall credit risk of the Company, which, in turn, causes bankers to raise interest rates on new borrowings. Liquidity risk is the risk to the Group's financial condition arising from its inability to meet its contractual obligations. The Group practises prudent liquidity risk management to minimise the mismatch of financial assets and liabilities whilst maintaining sufficient cash and the availability of funding through standby banking facilities.

4. FINANCIAL EFFECTS OF THE BORROWING OF FUNDS

4.1 Share Capital and Substantial Shareholdings

The Facilities will not have any effect on the issued and paid-up capital of the Company or the shareholdings of the Company's substantial shareholders.

4.2 Net Assets and Earnings Per Share

The Facilities will not have any material effect on the net assets and earnings per share of AIZO for the financial year ending 30 June 2026. The Facilities are expected to contribute positively to the earnings of the Group once the Facilities are fully utilized towards the completion and commissioning of the Project.

4.3 Gearing

The gearing ratio of AIZO as at 30 June 2025 was 0.60 times. After the acceptance and full utilization of the Facilities, the gearing ratio of AIZO is expected to increase.

5.0 INTEREST OF DIRECTORS, SUBSTANTIAL SHAREHOLDERS AND PERSONS CONNECTED TO SUCH DIRECTORS AND/OR SUBSTANTIAL SHAREHOLDERS

None of the Directors, substantial shareholders of AIZO or its subsidiaries and/or persons connected with them have any direct or indirect interest in the above-mentioned Facilities or the provision of the Corporate Guarantee.

6.0 STATEMENT BY DIRECTORS

The Board of Directors of AIZO, having considered the Facilities, is of the opinion that the acceptance of the Facilities is in the best interest of the Company.

This announcement is dated 18 June 2026.