Home › Business › Business News
Thursday, 4 July 2013
Kapar Power Station
KUALA LUMPUR: Tenaga Nasional Bhd’s (TNB) 60%-owned subsidiary, Kapar Energy Ventures Sdn Bhd, has proposed to issue RM2bil of sukuk in nominal value tomorrow.
In a filing with Bursa Malaysia, TNB said the sukuk would be issued in one lump sum and would consist of 13 series, with tenors ranging from one year to 13 years from the date of issuance. The coupon rate is from 3.82% to 4.95%. It added that the sukuk had been assigned with a final rating of AA+IS by Malaysian Rating Corp Bhd (MARC).
The sukuk would not be listed on any stock exchange.
“The sukuk proceeds shall be utilised for syariah-compliant purposes, which include refinancing the issuer’s outstanding Bai’ Bithaman Ajil Islamic debt securities, pre-funding the FSRA (if required) to meet the general working capital purposes of the issuer and to meet the fees and expenses in relation to the sukuk ijarah facility,” it said.
TNB said upon the issuance of the sukuk, its consolidated borrowings would increase by RM488mil.
“Based on TNB’s audited consolidated balance sheet for the financial year ended Aug 31, 2012, TNB’s consolidated gearing would then increase from 0.39 times to 0.41 times,” it said.
It added that the proposed issuance would not have any impact on its earnings and earnings per share and net assets per share for the current financial year.
The Islamic note offering is the second this year from TNB. The utility giant sold RM1.62bil of sukuk in May with maturities of four to 23 years to part-finance the construction of a new power plant. The utility sold a 2026 portion at a coupon rate of 4.21%.
Kapar Energy was established to acquire and operate Stesen Janaelektrik Sultan Salahuddin Abdul Aziz, or the Kapar Power Station (KPS), the largest multi-fuel thermal power station in Malaysia with a nominal capacity of 2,420MW.
Earlier, MARC assigned a preliminary AA+IS rating to Kapar Energy’s RM2bil sukuk with a “stable” outlook. The rating includes a two-notch support uplift from Kapar Energy’s standalone credit assessment and fundamentally represents the very high probability of parental support from TNB.
“MARC continues to view Kapar Energy as a strategic subsidiary of TNB.
“It maintains its view that there is a very high likelihood that TNB would provide timely capital and funding support to the company in times of stress on account of its strong operational and ownership ties with TNB,” MARC said.
TNB loses RM6bil in value over six days
House repairs by TNB bring relief to poor folk
Two cars land in roadworks trench
Ongkili: Langat 2 must go on
Ongkili: Plan for TNB to have a bigger stake in the coal-fired power plant
Asia slowdown as debt rises and the redback stabilises
A glowing ad campaign
Wrong ideas on retirement
IJM Land to start work on Penang project in Q2
A self-driven road to capital destruction
Have a 'whale' of a good time in Queensland
Abdul Aziz: Airline in danger of losing the plot
Steel millers hit by cheap Chinese imports
Hadi: Choose the path of PAS or go DAP's way
Copyright © 1995-2015 Star Media Group Berhad (ROC 10894D)(Formerly known as Star Publications (Malaysia) Berhad)