RAM Ratings: Tanjung Bin Energy Issuer’s AA3 Sukuk Murabahah Rating Reaffirmed

Tanjung Bin Energy Issuer’s (TBEI) MYR 3.29 billion Sukuk Murabahah has had its AA3 rating reaffirmed by RAM Ratings (RAM), with a Stable Outlook. TBEI is the turnkey contractor for Tanjung Bin Energy (TBE)’s ultra-supercritical 1,000 MW coal-fired power plant in Johor.

The reaffirmation is based on better-than-anticipated operating performance from TBE, as well as strong cash flow-generating capability which allows TBE to service its financial debts under the Sukuk.

RAM views TBEI and TBE in aggregate (the Group), underpinning the strong credit link between the two companies. The Group maintains a power purchase agreement with Tenaga Nasional Berhad, underscoring the pr...