TNB subsidiary lodges RM2 billion sukuk facility for Kenyir solar project
The Terengganu development combines a 595MW hybrid hydro-floating solar facility with a 297MW/1,190 megawatt-hour battery storage system.
A Tenaga Nasional Bhd (TNB) subsidiary has lodged a RM2 billion sukuk facility to help fund a hybrid hydro-floating solar development at Kenyir Lake in Terengganu, according to TNB’s Bursa Malaysia filing.
TI TNB Genco Solar Kenyir 1 Sdn Bhd lodged the Asean Sustainability SRI Sukuk Wakalah with the Securities Commission on October 30. MARC Ratings Bhd assigned the facility a preliminary AA+IS rating with a stable outlook.
The project comprises 595 megawatts (MW) of alternating-current hybrid hydro-floating solar capacity, alongside a battery energy storage system rated at 297MW/1,190 megawatt-hours. It is being developed under the Corporate Renewable Energy Supply Scheme (Cress), which allows generators to arrange renewable electricity supplies for corporate consumers.
TNB said the proceeds would partly cover development and construction, including engineering, procurement, installation, testing and commissioning. Other uses include repaying shareholders’ project-related advances, funding working capital and pre-operating expenses, meeting designated account requirements and paying facility expenses.
The sukuk’s tenure will range from at least one year to 23 years after issuance. Issuance must take place within 90 business days of lodgement, unless an extension is approved. TNB said all proceeds would serve Shariah-compliant purposes under applicable sustainability and responsible investment frameworks.
TNB Power Generation Sdn Bhd, wholly owned by TNB, holds 70 per cent of the project company. Terengganu Incorporated Sdn Bhd owns the remaining interest through a joint venture arrangement.
