TNB Unit Raises RM1.05 Bln Via ASEAN Green Sri Sukuk For Kedah Solar Project

KUALA LUMPUR, May 8 (Bernama) -- Tenaga Nasional Bhd’s (TNB) subsidiary TNB Renewables Sdn Bhd, via its unit TNB Kuala Muda Solar Sdn Bhd, has issued a RM1.05 billion sukuk through the ASEAN Green Sustainable and Responsible Investment (SRI) Sukuk Wakalah to finance a solar photovoltaic (PV) project in Kedah.

In a filing with Bursa Malaysia, the utility group said TNB Kuala Muda Solar was tasked with “the design, engineering, procurement, construction, installation, testing, commissioning, ownership, operation and maintenance of a large-scale solar PV facility with an installed capacity of 500-megawatt alternating current in Kuala Muda, Sungai Petani, Kedah.”

The sukuk was issued in 17 tranches, it said.

It said proceeds raised from the sukuk would be utilised for Shariah-compliant purposes, according to TNB’s Transition Finance Framework issued on Sept 24, 2024. 

TNB said the proceeds would be used to part-finance project costs, including payment or reimbursement to the sponsor for expenses incurred prior to the financial close, and repayment of existing borrowings or Islamic financing facilities.

It said that part of the proceeds would also be allocated for pre-funding the finance service reserve account, equivalent to the next six months’ finance service due under the sukuk programme, working capital requirements during the initial operating phase of the project, and relevant issuance expenses.

CIMB Investment Bank Bhd and Maybank Investment Bank Bhd were the joint principal advisers, joint lead arrangers and joint lead managers for the ASEAN Green SRI Sukuk Wakalah, it said.

The lodgement of documents pertaining to the sukuk programme was made with the Securities Commission on March 3, 2026, it added.

-- BERNAMA