KUALA LUMPUR: Tenaga Nasional Bhd (TNB) is raising RM12 billion from a sukuk issue for its future capital expenditure.
TNB said in a statement today that it had lodged the Sukuk Wakalah programmes with the Securities Commission (SC).
The issue involves RM10 billion for Islamic medium term notes (IMTN programme) and RM2 billion of Islamic commercial papers (ICP).
The national utility company said the IMTN programme would have a tenure of 50 years from the date of the first issue of IMTN Sukuk Wakalah, which will made within 60 business days from the date of the lodgment with the SC.
Meanwhile, the ICP programme will have a tenure of seven years from the date of first issue of the ICP Sukuk Wakalah.
TNB said the proceeds from the Sukuk Wakalah would be used to finance its capex as well as investments, general corporate purposes, working capital requirements and/or refinance any existing financing facilities.
"The Sukuk Wakalah programmes will provide TNB and its subsidiaries with the flexibility to time its fund-raising exercises with varying nominal value and tenures for optimal asset-liability matching," it said.
TNB added that the programme would enable it to access a diversified pool of investors in local capital markets.