Tenaga Nasional Berhad (TNB) has successfully raised RM4 billion through its first Sustainability Sukuk Wakalah issuance, marking a significant milestone in the company’s sustainable financing journey. The issuance represents the first drawdown under TNB’s newly established Islamic Medium-Term Notes (IMTN) programmed, which has a total capacity of up to RM10 billion.
In a filing with Bursa Malaysia, TNB announced that the sukuk was issued on May 29 under the Shariah principle of Wakalah Bi Al-Istithmar. The fundraising exercise forms part of the utility company’s long-term financing strategy while supporting its broader sustainability commitments.
The RM4 billion issuance was structured into five tranches with tenures ranging from seven to 25 years. The largest tranche, worth RM1.35 billion, carries a maturity period of 25 years and offers a periodic distribution rate of 4.37% per annum. The second-largest tranche amounted to RM1.05 billion with a 20-year tenure and a profit rate of 4.31%.
Meanwhile, TNB raised RM850 million through a 15-year tranche offering a return of 4.19%. The remaining tranches consisted of RM300 million with a 10-year tenure at 3.93% and RM450 million with a seven-year tenure carrying a profit rate of 3.81%.
CIMB Investment Bank Berhad and Maybank Investment Bank Berhad acted as joint principal advisers, joint lead arrangers and joint lead managers for the programmed and issuance. Maybank Investment Bank also served as the Sustainability Framework Adviser for the Sukuk Wakalah programmed.
According to TNB, the issuance will increase the group’s consolidated borrowings by RM4 billion. However, the company does not expect the transaction to have a material impact on its earnings, earnings per share, or net assets per share for the current financial year.
The company further clarified that the sukuk issuance will not result in any changes to its issued share capital or affect the shareholdings of its major shareholders.
First announced in April, the Sustainability Sukuk Wakalah programmed is designed to provide TNB with access to long-term funding while supporting projects and investments that align with sustainability objectives. The successful issuance also reflects continued investor confidence in Malaysia’s sustainable debt market and reinforces TNB’s standing as one of the country’s leading corporate sukuk issuers.