Jimah East Power to issue RM10b sukuk

PETALING JAYA: Tenaga Nasional Bhd’s (TNB) 70% owned subsidiary Jimah East Power Sdn Bhd (JEP) is planing a RM10 billion sukuk to finance a proposed 2,000MW coal-fired power plant in Negri Sembilan.
In its filing with Bursa Malaysia last Friday, TNB said the 23-year sukuk would be issued in one lump sum.
TNB said the sukuk is expected to increase its consolidated gearing the quantum of which is dependent on the amount issued.
“For illustrative purposes, based on TNB’s audited consolidated balance sheet for the financial year ended 2014 and assuming that the maximum amount of RM10 billion nominal value of the sukuk murabahah is issued, TNB’s consolidated gearing would increase from 37% to 42% (before taking into consideration the use of proceeds and expenses relating to the sukuk),” it said.
CIMB Investment Bank Bhd, HSBC Amanah Malaysia Bhd and Maybank Investment Bank Bhd are managing TNB’s sukuk issue.