RAM Reaffirms AA2/Stable Rating of Tanjung Bin Power’s MYR 4.5 Billion Sukuk Ijarah Programme 

RAM Ratings (RAM) has reaffirmed the AA2/Stable rating of Tanjung Bin Power’s (TBP) MYR 4.5 billion Sukuk Ijarah Programme (the Sukuk). TBP is a Malaysia-based independent power producer (IPP) that owns and operates a 2,100 MW coal-fired power plant in Tanjung Bin, Johor, under a 25-year Power Purchase Agreement (PPA) with sole off-taker Tenaga Nasional Berhad (TNB), which expires in September 2031.

Ratings Rationale

The rating is supported by TBP’s healthy operating performance, resulting in satisfactory debt-coverage levels, as well as a robust business profile, backed by the favourable terms of the PPA. TBP’s power plant has been operating below the PPA’s unscheduled outage limit of 6% over the past six years, enabling it to...