RAM Assigns Final AA3/Stable Rating to Tanjung Bin Energy’s MYR 4.5 Billion Sukuk

RAM Rating Services (RAM) has assigned a final AA3/Stable rating to Tanjung Bin Energy’s (TBE) MYR 4.5 billion Islamic Medium-Term Note (MTN) Programme (2021/2041) (Sukuk). TBE is a Malaysian-based independent power producer (IPP) that owns and operates an ultra-supercritical 1,000 MW coal-fired power plant in Tanjung Bin, Johor.

Ratings Rationale

RAM had previously assigned a preliminary rating of AA3/Stable to TBE’s Sukuk which has now been finalised upon reviewing all relevant transaction documents and the revised financial model. The rating reflects TBE’s robust project economics, underscored by the terms of the 25-year power purchase agreement with Tenaga Nasional, which is set to expire in March 2041.

Since commenceme...