TNB cuts borrowing costs on dearth of sukuk

KUALA LUMPUR: Tenaga Nasional Bhd (TNB), Malaysia’s biggest power producer, is refinancing sukuk at lower borrowing costs to investors hungry for new issues after a 67% drop in sales this year.

The state-owned company plans to sell RM2bil of debt with maturities of one to 13 years at profit rates of 3.82% to 4.95%, via unit Kapar Energy Ventures Sdn, according to a Bursa Malaysia filing. Similar-maturity ringgit-denominated notes issued in 2004 pay 6.85% and 7.95%, data compiled by Bloomberg show.