Tenaga Nasional Bhd has raised RM4 billion from its first sustainability sukuk issuance that will finance or refinance eligible transition projects.
The sukuk was issued in five tranches with tenures from seven to 25 years, according to a Bursa Malaysia filing by the national electric utility company. Annual distribution rates range from between 3.81% and 4.37%.
Tenaga Nasional said the sukuk issuance will increase its consolidated borrowings by RM4 billion, but will not have a material impact on earnings.
The sukuk is the first issuance under Tenaga Nasional’s RM10 billion sukuk wakalah programme established in April this year. Under the programme, Tenaga Nasional may issue conventional sukuk as well as sustainability and sustainability-linked sukuk.
The company had cash and cash equivalents of RM15.96 billion and total borrowings of RM60.51 billion, translating into a net gearing ratio of 84.8%, as at March 31, 2026.
Maybank Investment Bank and CIMB Investment Bank acted as joint principal advisers, joint lead arrangers and joint lead managers for the transaction. Maybank Investment also served as the sustainability framework adviser for the programme.
Shares of Tenaga Nasional closed up four sen or 0.3% to RM14.28 on Friday, valuing the company at RM83.24 billion. Over the past one year, the stock has gained 43.5%.
