KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has lodged an ASEAN Sustainability SRI Sukuk Wakalah facility to finance the development of a 595-megawatt (MW) hybrid floating solar project at Kenyir Lake, Terengganu.
The utility group said the facility was lodged with the Securities Commission Malaysia on Oct 30 through TI TNB Genco Solar Kenyir 1 Sdn Bhd, a 70%-owned subsidiary of TNB Power Generation Sdn Bhd.
The project is being undertaken by a joint venture between TNB Power Generation and Terengganu Incorporated to develop, finance, construct, operate and maintain the floating solar facility, which will be supported by a 297MW/1,190 megawatt-hour battery energy storage system.
The sukuk facility will have tenures ranging from one to 23 years, with issuances to be made within 90 business days of the lodgement date, subject to any extension approved by the SC.
MARC Ratings Bhd has assigned the facility a preliminary rating of AA+IS with a stable outlook.
Proceeds will be used to part-finance and reimburse project development and construction costs, fund working capital and pre-operating expenses, and meet designated account requirements and facility-related expenses.
The facility has also received endorsement from the SC's Shariah Advisory Council.
RHB Investment Bank is the principal adviser and lead arranger, while RHB Investment Bank and CIMB Investment Bank are the joint lead managers.