KUALA LUMPUR: Tenaga Nasional Bhd (TNB) announced that the issuance of RM3.67bil in nominal value of sukuk wakalah by project company, Southern Power Generation Sdn Bhd (SPG), has been completed on Tuesday.
SPG, which is 51% owned by TNB and 49% by SIPP Energy Sdn Bhd, is a special-purpose vehicle company for the development of 2x720MW combined cycle gas turbine power plant in Pasir Gudang, Johor.
In a filing with Bursa Malaysia, the utility company said 80% of the proceeds from sukuk wakalah would be used to fund the project costs.
The sukuk wakalah would not have any effect on the issued share capital of TNB and/or the substantial shareholders’ shareholdings in TNB, it said.
TNB said it would, however, increase its consolidated gearing.
For illustrative purposes, based on TNB’s consolidated balance sheet ended Aug 31, 2017, and the total amount of RM3.67bil in nominal value of the sukuk wakalah issuance, TNB’s consolidated gearing would increase to 42.5% from 40.3%.
CIMB Investment Bank Bhd (CIMB) is the sole principal adviser for the sukuk wakalah.
CIMB and Maybank Investment Bank Bhd are the joint lead arrangers and joint lead managers for the sukuk wakalah while CIMB Islamic Bank Bhd and Maybank Islamic Bhd are the joint syariah advisers for the sukuk wakalah. - Bernama