IslamicFinance.de

Tenaga Nasional Bhd (TNB) is asking bankers to submit pitches for a US$3 billion (RM13 billion) sukuk programme, and proceeds will be used to fund overseas investments, including the purchase of a 30 per cent stake in Turkish power firm Gama Enerji AS for US$243 million. The company last issued dollar-denominated debt in 1996, when it sold 100-year conventional notes. Bankers’ proposals for TNB’s sukuk programme had to be submitted by the end of this week. TNB is rated “BBB+”, the third-lowest investment grade by Standard & Poor’s and Fitch Ratings. The yield on the company’s existing conventional dollar bonds due 2025 climbed 31 basis points last year to 4.39 per cent and was 4.33 per cent yesterday.

Malaysia's Tenaga Nasional Bhd is seeking to raise as much as 10 billion ringgit ($2.7 billion) in an Islamic bond issue to develop a power plant project it is planning to take over from debt-laden state fund 1MDB. The planned purchase of 1MDB's 70 percent stake in 3B, a greenfield 2,000 MW coal-fired plant project, will take the pressure off 1MDB to find the funds to develop the project and help it focus on paring down debt of more than $11 billion - a burden that has weighed on Malaysia's currency and its credit rating. It also fits well with Tenaga's own energy supply needs, although some analysts are worried that the company may end up overpaying if the government pushes for 1MDB to gain the best deal it can.

Tenaga Nasional is going to sell as much as 5 billion ringgit in 20-year Islamic bonds.
The bonds will be formed according to the ijara or Islamic leasing contract.