KUALA LUMPUR, Jan 5 – Tenaga Nasional Bhd’s (TNB) shares moved into negative territory Monday despite news reports it plans to issue US$3 billion (RM12.89 billion) sukuk programme. The plan to tap the US dollar debt market would mark the first time in two decades with the utility company’s debut offering of global Islamic bonds.
As at 4.19 pm, TNB fell eight sen to RM13.24 with 4.68 million shares traded. It was reported that the proceeds will be used to fund overseas investments, including to buy a 30 per cent stake in Turkish power firm, Gama Enerji A.S., for US$243 million (RM1.04 billion).
The report said that the planned sale would help stem a slump in issuance of global Islamic bonds and be Malaysia’s first since the Federal Reserve Board raised interest rates in December. It said the bankers’ proposals for TNB’s sukuk programme have to be submitted by the end of this week. TNB, which has market capitalisation of RM74.8 billion and a total installed capacity of 10,818 megawatts, last issued US dollar-denominated debt in 1996, when it sold 100-year conventional notes.
