MALAYSIA: TNB Power Generation (TPGSB), a wholly-owned subsidiary of Tenaga Nasional (TNB), has lodged a request with the Securities Commission Malaysia to establish a RM10 billion (US$2.37 billion) Sukuk Wakalah program for the issuance of Islamic medium-term notes.
According to a bourse filing, the Sukuk program is rated ‘AAAIS’ by Malaysian Rating Corporation. The Sukuk program has a tenor of 30 years and TPGSB has the flexibility to also issue sustainability Sukuk under the program.
Proceeds from the issuance of Sukuk will be utilized to finance Shariah compliant capital expenditure, investment, general corporate purposes and working capital requirements, among others. Meanwhile, proceeds from the issuance of sustainability Sukuk will be utilized for eligible projects that meet the criteria as set out in the TPGSB Sustainability Sukuk Framework.
CIMB Investment Bank and Maybank Investment Bank have been appointed as the joint principal advisors, joint lead arrangers, joint sustainability framework advisors as well as the joint lead managers for the first issuance of Sukuk to be made under the Sukuk Wakalah program. CIMB Islamic Bank and Maybank Islamic are the joint Shariah advisors for the Sukuk Wakalah program.