TNB unit issues RM1.5bil Sukuk Wakalah to fund Nenggiri project

KUALA LUMPUR: Tenaga Nasional Bhd’s (TNB) wholly-owned subsidiary TNB Power Generation Sdn Bhd (TPGSB) has issued RM1.5 billion worth of Sustainability Sukuk Wakalah under its Islamic medium-term notes programme of up to RM10 billion in nominal value.

The programme, which has a 30-year tenure, is based on the Shariah principle of Wakalah Bi Al-Istithmar.

In a filing with Bursa Malaysia today, the national electric utility said the sukuk was issued in three tranches, comprising RM150 million (with a tenure of 10 years), RM750 million (15 years), and RM600 million (20 years).

The periodic distribution rate for each of the tranches are 4.70 per cent, 5.05 per cent and 5.20 per cent per annum, respectively.

TNB said at the peak of the book-building exercise, the RM1.5 billion Sustainability Sukuk Wakalah was oversubscribed by 3.41 times, with orders received amounting to an aggregate of RM5.1 billion from over 30 accounts.

"The proceeds from the issuance of Sustainability Sukuk Wakalah will be utilised by TPGSB for the Nenggiri Hydroelectric Power Plant Project as set out in the TPGSB Sustainability Sukuk Framework," it said.

It noted that TPGSB Sustainability Sukuk Framework had been accorded a "gold” rating by MARC Ratings Bhd as the independent external reviewer.

"This sustainability funding initiative by TPGSB demonstrates TPGSB’s commitment to support TNB’s aspiration to achieve net zero emission by 2050, a move towards decarbonisation and renewable energy.

"As a significant and wholly owned subsidiary of TNB, TPGSB will play an important role in supporting TNB’s sustainability aspirations and commitment in mitigating climate change by adopting greener, cleaner and more efficient power generation technology," the company said. - Bernama