MALAYSIA: RAM’s ‘AAA/Stable/P1’ ratings on Tenaga Nasional (TNB)’s Islamic medium-term note and Islamic commercial paper programs will not be under review as a result of the electricity company’s plans to boost its capital expenditure (capex), a press release read.
TNB had announced that it will be committing RM20 billion (US$4.45 billion)-worth of capex annually over the next 28 years. The larger capex allocation will be channeled into various investments to “fast-track the road to net zero”.
“From an environmental, social and governance perspective, we see TNB’s lead in accelerating its energy transition plan and its role as the national utility company as a catalyst for other players to step up their sustainability agendas towards realizing Malaysia’s 2050 net zero target,” the rating agency said.