Tenaga Nasional said the Sukuk will be issued in one lump sum and will have a tenure of up to 20 years from the date of issuance. (Pic by ASYRAF HAMZAH)

KUALA LUMPUR: Tenaga Nasional Bhd is issuing RM4 billion Sukuk Wakalah via its 51 per cent-owned subsidiary, Southern Power Generation Sdn Bhd.

Tenaga Nasional said the proceeds of the sukuk will be utilised to fund up to eighty per cent of the total project costs including the construction cost of 2x720 megawatt combined-cycle gas turbine power plant in Pasir Gudang, Johor.

“The Sukuk Wakalah will be issued in one lump sum and will have a tenure of up to 20 years from the date of issuance,” it said.

Tenaga Nasional said the effects of the issuance of the Sukuk Wakalah on the consolidated earnings and consolidated earnings per share of Tenaga Nasional are not expected to be material.

However, it said the actual effects will depend on, amongst others, the effective borrowing cost of such issuance which cannot be determined at this stage.

“The issuance of the Sukuk Wakalah will increase the company’s consolidated gearing from 39.8 per cent to 42.3 per cent assuming the maximum amount of RM4 billion is issued,” it said.

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