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

Tenaga Nasional Bhd’s (TNB) wholly-owned subsidiary TNB Power Generation Sdn Bhd (TPGSB) has issued RM1.5 billion worth of sustainability Sukuk Wakalah. The Islamic bond was issued under its Islamic medium-term notes programme of up to RM10 billion in nominal value. In a filing with Bursa Malaysia, the national 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 rates for each of the tranches are 4.70%, 5.05% and 5.20% per annum, respectively. TNB said, “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.”