KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has submitted plans to the Securities Commission Malaysia for the establishment of an Islamic Medium Term Notes programme (Sukuk Wakalah) with a total value of up to RM10 billion.
The utility giant stated that the programme will span a period of up to 50 years from the first issuance date. Individual sukuk offerings under this programme may have tenures ranging from one to 50 years, offering flexibility in structuring.
According to TNB, the programme allows the company to issue sukuk periodically, including instruments aligned with sustainability and sustainability-linked frameworks.
The Sukuk Wakalah programme has received a top-tier AAA rating from RAM Rating Services, reflecting strong creditworthiness.
Funds raised through the sukuk issuances will be used for shariah-compliant capital expenditure, investments, general corporate needs, and working capital. Additionally, proceeds may be allocated toward refinancing existing conventional debt and Islamic financing facilities.
TNB also highlighted that proceeds from sustainability-focused sukuk will support projects that meet the criteria outlined in its Transition Finance Framework. This aligns with the company’s broader sustainability strategy and its goal of achieving net-zero carbon emissions by 2050.
The programme is expected to enhance TNB’s financial flexibility, enabling efficient timing of fundraising activities while attracting a diverse base of investors within the domestic capital market.
CIMB Investment Bank and Maybank Investment Bank have been appointed as joint principal advisers, lead arrangers, and lead managers. Meanwhile, CIMB Islamic Bank and Maybank Islamic will serve as joint Shariah advisers.