TNB issues RM3b worth of Islamic bonds

TNB issues RM3b worth of Islamic bonds
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KUALA LUMPUR (Nov 25): Utility giant Tenaga Nasional Bhd (TNB) has issued a combined RM3 billion worth of Islamic bonds or sukuk across four tranches of Islamic Medium Term Notes (IMTNs) on Thursday.

TNB’s four tranches of IMTNs, which have tenures of seven to 20 years, will pay annual profit rates of between 3.92% and 4.67%, according to the Bond and Sukuk Information Exchange (BIX) website.

The four tranches comprise a seven-year RM300 million IMTN, which pays an annual profit rate of 3.92%; a 10-year RM300 million IMTN, which offers 4.08% annual profit rate; a 15-year RM1.2 billion IMTN (4.47% annual profit rate), and a 20-year RM1.2 billion IMTN (4.67% annual profit rate).

According to BIX, the seven-year RM300 million IMTN will mature on Nov 24, 2028; the 10-year RM300 million IMTN will mature on Nov 25, 2031; the 15-year RM1.2 billion IMTN will mature on Nov 25, 2036; while the RM20-year RM1.2 billion IMTN will mature on Nov 25, 2041.

“At the peak of the book-building exercise, the sukuk wakalah was oversubscribed by approximately three times, from the initial issue size of RM2 billion, with orders received amounting to an aggregate of RM5.8 billion from over 40 accounts. The transaction was subsequently upsized from the initial issue size of RM2 billion to RM3 billion, upon book closing,” TNB said in a filing with the local bourse.

TNB said its consolidated borrowings will increase by RM3 billion following the sukuk issuance. Based on TNB’s consolidated statement of financial position as at June 30, 2021, TNB’s consolidated gearing would then increase to 0.91 times from 0.86 times.

AmInvestment Bank Berhad and CIMB Investment Bank Berhad are the joint lead managers and joint bookrunners for the sukuk.

TNB’s shares closed six sen or 0.64% lower at RM9.38, giving it a market capitalisation of RM53.71 billion.

Tan Choe Choe