What Is the TNB RM2bil Sukuk for the Kenyir Solar Project?
Tenaga Nasional Bhd (TNB)’s subsidiary has lodged an Islamic medium-term notes facility worth RM2 billion. It is called the Asean Sustainability SRI Sukuk Wakalah.
TI TNB Genco Solar Kenyir 1 Sdn Bhd lodged the facility with the Securities Commission on Oct 30. TNB disclosed the filing to Bursa Malaysia.
Who Owns the 595MW Kenyir Hybrid Solar Project?
TI TNB Genco is 70% owned by TNB Power Generation Sdn Bhd, a wholly owned subsidiary of TNB.
The remaining interest is held by Terengganu Incorporated Sdn Bhd through a joint venture arrangement.
How Big Is the Kenyir Hybrid Solar Facility?
The project is a 595-megawatt (MW) alternating current hybrid hydro-floating solar facility at Kenyir Lake.
A 297MW/1,190 megawatt-hour battery energy storage system (BESS) supports the plant.
The project is being developed under the Corporate Renewable Energy Supply Scheme (Cress), which enables renewable energy supply arrangements between generators and corporate consumers.
Where Will the RM2bil Sukuk Proceeds Go?
Proceeds will part-finance project development and construction costs, including:
- Engineering, procurement, installation, testing and commissioning
The funds will also be used for:
- Reimbursing existing shareholders’ advances related to project development
- Financing working capital and pre-operating expenses
- Meeting designated account requirements and facility-related expenses
All proceeds will be used for Shariah-compliant purposes under the applicable sustainability and responsible investment frameworks.
What Are the Tenure and Rating Terms of the TNB Sukuk?
The sukuk tenure is at least one year and up to 23 years from the date of issuance.
Issuance must take place no later than 90 business days from lodgement with the Securities Commission, or on other extended dates approved.
MARC Ratings Bhd gave a preliminary rating of AA+IS with a stable outlook.
Which Frameworks Back the TNB Kenyir Sukuk?
The facility is aligned with the SC’s Sustainable and Responsible Investment Sukuk Framework, Asean green, social and sustainability bond standards, and International Capital Market Association principles and guidelines.
It also falls under TNB’s Transition Finance Framework, dated Sept 24, 2024. The SC’s Shariah Advisory Council endorsed the facility on July 6.
Who Is Arranging the TNB RM2bil Sukuk?
RHB Investment Bank Bhd is the principal adviser and lead arranger. It is joint lead manager alongside CIMB Investment Bank Bhd.
RHB Islamic Bank Bhd is the Shariah adviser for the facility.
Why Is the TNB Sukuk Worth Monitoring for Shareholders?
The filing details reported so far do not disclose the sukuk’s profit rate, so the financing cost is not yet known.
The issuance date is worth tracking, since it must fall within 90 business days of the Oct 30 lodgement unless extended. Shareholders can follow such filings with help from our AI Stock Analysis for Malaysians guide.
Key Takeaways
- TNB subsidiary lodged a RM2 billion Asean Sustainability SRI Sukuk Wakalah on Oct 30.
- The Kenyir project is a 595MW hybrid hydro-floating solar plant with a 297MW/1,190 MWh BESS.
- TNB Power Generation holds 70% of TI TNB Genco; Terengganu Incorporated holds the rest.
- Tenure runs from at least one year to 23 years, with a preliminary AA+IS rating from MARC Ratings.
- The profit rate has not been disclosed in the filing details reported so far.
This is general information, not financial advice. Do your own research before making any investment decision on Bursa Malaysia.
Frequently Asked Questions
How much is TNB’s sukuk for the Kenyir solar project?
TNB’s subsidiary lodged a RM2 billion Islamic medium-term notes facility, called the Asean Sustainability SRI Sukuk Wakalah. It finances the 595MW hybrid hydro-floating solar project at Kenyir Lake, Terengganu.
How big is the Kenyir Lake hybrid solar project?
The project is a 595-megawatt alternating current hybrid hydro-floating solar facility. It is supported by a 297MW/1,190 megawatt-hour battery energy storage system.
Who owns TI TNB Genco Solar Kenyir 1?
TNB Power Generation Sdn Bhd holds 70% of TI TNB Genco. Terengganu Incorporated Sdn Bhd holds the remaining interest through a joint venture arrangement.
What credit rating did the TNB sukuk receive?
MARC Ratings Bhd gave the facility a preliminary rating of AA+IS with a stable outlook. The sukuk tenure runs from at least one year up to 23 years from issuance.
Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.
Related Articles & Resources
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
Want to invest in Bursa Malaysia or US markets? Contact Dexter Chia, an AI Driven Remisier who has 2,200+ clients at Malacca Securities Sdn Bhd (M+ Global). M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?
