Tenaga Nasional Bhd (TNB) is seeking to raise up to RM10 billion through a sukuk issuance to support its operations, investments and sustainability initiatives.
The utility group has lodged an Islamic medium-term note programme, based on sukuk wakalah, with the Securities Commission Malaysia. The programme allows TNB and its subsidiaries to issue sukuk from time to time, with varying sizes and tenures, according to a Bursa Malaysia filing on Wednesday.
TNB said the programme provides flexibility to time fundraising activities and structure issuances with different nominal values and tenures for optimal asset-liability management. It also enables the group to tap into a broader pool of investors in the local capital market.
Under the programme, TNB may issue conventional sukuk as well as sustainability and sustainability-linked sukuk, in line with its goal of achieving net-zero emissions by 2050.
The programme will have a tenure of up to 50 years from the first issuance date, while individual sukuk offerings may range from one to 50 years. The first issuance is expected within 90 business days.
CIMB Investment Bank and Maybank Investment Bank have been appointed as joint principal advisers, joint lead arrangers and joint lead managers. CIMB Islamic Bank and Maybank Islamic will serve as joint Shariah advisers.
TNB shares rose 18 sen, or 1.29%, to close at RM14.08 on Wednesday, giving the group a market capitalisation of RM82.07 billion. The stock has gained 32 sen over the past year.
