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

RAM Rating Services (RAM) has assigned a preliminary AA3/Stable rating to Tanjung Bin Energy’s (TBE) proposed MYR 4.5 billion Islamic Medium-Term Note Programme (the Proposed Sukuk).

TBE is a Malaysian-based independent power producer (IPP) that owns and operates an ultra-supercritical 1,000 MW coal-fired power plant (the Plant) in Tanjung Bin, Johor, under a 25-year power purchase agreement (PPA) with Tenaga Nasional, which is set to expire in March 2041.

According to RAM, proceeds of the Proposed Sukuk will be used to repay amounts owed by TBE to its 100%-owned turnkey contractor, Tanjung Bin Energy Issuer (TBEI). Previously, TBEI had raised financing comprising of an MYR 3.29 billion Sukuk Murabahah (the Initial Sukuk, rated AA3/Stable), as well as Senior Loan F...