Malaysia’s Tenaga to raise funds through Islamic bonds for development of power plant

Tenaga Nasional Berhad (TNB) will raise Islamic bonds worth MYR 10 billion ($2.39 billion) to build and operate a 2,000 MW coal-fired power plant estimated to cost $3.6 billion, a project it took over from state fund 1Malaysia Development Berhad (1MDB).  In July, TNB bought 70 per cent of 1MDB’s stake in Jimah East Power Sendirian Berhad, amounting to MYR 46.9 million. Jimah East Power Sendirian Berhad won the contract to develop the plant. The remaining 30 per cent shares are owned by Japan’s Mitsui and Company. The sukuk murabaha will be issued by Jimah in a lump sum with tenors of up to 23 years from the date of issuance.