TNB to raise funds for coal power plant

Tenaga Nasional Bhd wants to raise funds for a coal power plant by establishing a RM5 billion Islamic Securities Programme in nominal value through an independent special purpose company, Manjung Island Energy Bhd.

In a filing to Bursa Malaysia, it said the proceeds raised from the proposed Islamic Securities Programme would be utilised by MIEB to purchase certain Syariah-compliant leasable assets from TNB Janamanjung Sdn Bh, a wholly-owned subsidiary of TNB, according to a reprot by Bernama News.

"TNBJ shall utilise the proceeds raised for the construction and delivery and working capital requirement for the 1,010 megawatt coal power plant in Manjung, Perak," TNB said.

The utility giant said the proposed Islamic Securities Programme would have a tenure of 28 years from the date of first issue which was expected to be in November.

The proposed programme would not have any effect on the issued and paid-up-share capital of TNB or the substantial shareholders, it added.