Tenaga Nasional Bhd (TNB) has no plans to issue new bonds this year, but instead will raise RM4.4bil by mid-2004 through the sale of its RM3.6bil Kapar power plant as well as stakes in several independent power producers, said chairman Datuk Dr Awang Adek Hussain.
Proceeds from the disposals will be used to repay borrowings – loan repayments in the financial year ending Aug 31 total RM1bil – and to meet other funding requirements. TNB's total debt stands at about RM30bil, half of these in foreign currencies.
“The strengthening of (foreign currencies) like the yen will result in some paper loss and increase our debt burden. However, it will not effect cashflow,'' Awang Adek told reporters after the launch of its Declaration of Assets ceremony at Universiti Tenaga Nasional in Kajang yesterday.
The national power utility company has outstanding debts in several major currencies, including the US dollar, yen and pound sterling. Yen-denominated debts account for about 20% of its foreign loans.
Awang Adek said TNB had also implemented a hedging strategy to reduce foreign currency risk exposure.
The US dollar, in which a major portion of TNB's debt is denominated, has been weakening against other major foreign currencies these past months.
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