This article first appeared in The Edge Financial Daily, on January 7, 2016.
KUALA LUMPUR: Tenaga Nasional Bhd (TNB) said it is in preliminary stages of setting up a long-term multi-currency medium-term note programme as part of its ongoing process of exploring funding options it might require in the future.
“This is in line with [our] strategic objectives, and to sustain growth and shareholder value creation,” it said in a statement yesterday.
“Any potential sukuk issuance in the future will largely depend on the successful completion of prospective transactions,” the national utility company added.
It was responding to recent news reports suggesting that it has plans to issue US$3 billion (RM13.17 billion) global sukuk to fund its investments.
On Monday, Bloomberg reported that TNB was asking bankers to submit pitches for a US$3 billion sukuk programme, and proceeds will be used to fund overseas investments, including the purchase of a 30% stake in Turkish power firm Gama Enerji AS for US$243 million.
The group last issued US dollar-denominated debt in 1996, when it sold 100-year conventional notes, it was reported.