Friday 29 Mar 2024
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KUALA LUMPUR (Aug 28): Tenaga Nasional Bhd's 70%-owned Jimah East Power Sdn Bhd (JEP) plans to raise up to RM10 billion from a sukuk, which will finance a proposed 2,000MW coal-fired power plant in Negeri Sembilan.

In its filing to Bursa Malaysia today, Tenaga said the 23-year sukuk would be issued in one lump sum.

“The proceeds from the Sukuk Murabahah shall be utilised by JEP for Shariah-compliant purposes in connection with the financing, design, engineering, procurement, construction, installation, testing, commissioning, ownership, operation and maintenance of a 2,000MW coal-fired power plant and associated facilities,” said Tenaga.

Tenaga said the project at Kuala Lukut would include transmission line and interconnection facilities.

According to Tenaga, the sukuk will increase its debt level, the quantum of which depends on the amount issued.

Based on Tenaga’s balance sheet for the year ended Aug 31, 2014 and assuming the full sukuk is issued, the company said its gearing would rise from 37% to 42%.

CIMB Investment Bank Bhd, HSBC Amanah Malaysia Bhd and Maybank Investment Bank Bhd are managing Tenaga's sukuk issue.

At 4.10pm, Tenaga shares were traded flat at RM11.20 for a market capitalisation of RM63.21 billion.

The stock saw some six million shares done.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

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