Tenaga unit issues RM1.62b Sukuk for Penang power plant
KUALA LUMPUR: Tenaga Nasional Bhd's unit has issued RM1.625bil Islamic Sukuk to finance the construction of a 1,071.43 MW combined cycle gas-fired power plant in Seberang Perai Tengah, Penang.
HSBC Amanah Malaysia Bhd and KAF Investment Bank Bhd are the joint lead arrangers and the joint lead managers for the serial senior secured Islamic Sukuk issue.
The Sukuk consists of 39 series with tenors ranging from four to 23 years. The Sukuk was structured under the Shariah principle of Ijarah and Wakalah and will be issued on May 29.
The Sukuk was issued by the power giant's unit TNB Northern Energy Bhd and the proceeds would be used for the plant to help meet part of the power demand in the peninsular by 2016.
HSBC Amanah HSBC Amanah also acted as the Shariah adviser for the Sukuk issue while HSBC Bank Malaysia Bhd acted as the financial adviser for the project financing.
“Offered through a book-building process which opened on 13 May morning, orders received grew to a high of RM6.0bil, allowing price guidance to be tightened.
“Despite the revised price guidance and on the back of overwhelming response from investors, the final price guidance was released on May 14, opening with the order books continuing to grow strongly.
“The final order books were over RM14bil, with over 50 accounts participated during the one and half day book-building period which represents a bid-to-cover ratio of 9.0 times,” said HSBC Amanah.
It said the Sukuk was accorded a rating of AAA IS by Malaysian Rating Corporation Bhd reflecting the project structures high reliability and credit worthiness.