KUALA LUMPUR (June 25): Tenaga Nasional Bhd’s share price continues to fall after the counter closed lower for three consecutive day this week, as news spread the utility giant plans to raise some RM10 billion in a sukuk issue to partly finance its purchase of a 70% stake in Project 3B.

As at 3:21pm today, Tenaga (fundamental: 1.3; valuation: 1.8) was trading at RM12.54 per share, down 24 sen or 1.88%, and was the bourse’s biggest loser across the bourse today, after British American Tobacco (M) Bhd.

Earlier, it was trading an intraday low of RM12.52 apiece, down 26 sen.

Based on the current price, the stock has fallen about 56 sen or 4.2% from RM13.10 on Monday.

Reuters had on Tuesday, reported TNB (fundamental: 1.3; valuation: 1.8) plans to raise as much as RM10 billion in an Islamic bond issue, which would be the largest sukuk globally this year.

Quoting sources, Reuters’ report said plans for the issue were still preliminary.

Last week, on June 18, 2015, Energy, Green Technology and Water Minister Datuk Seri Maximus Ongkili had confirmed TNB is buying over 1Malaysia Development Bhd's 70% stake in Project 3B in Jimah, Negeri Sembilan, held through the state investor's energy arm, Edra Global Energy Bhd, for an undisclosed price.

TNB shares had fallen as much as 7% last week on news of the planned purchase, but had since regained lost ground, following its president and chief executive officer Datuk Seri Azman Mohd’s statement that the proposed acquisition was not a bail out.

“We wish to stress that no premium will be paid for the acquisition of the 70% stake in the project,” Azman had said. Japan’s Mitsui Co Ltd will retain its 30% stake in the project.

(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.)