Published on 30 Mar 2021.
RAM Ratings has assigned a final AA3/Stable rating to Tanjung Bin Energy Sdn Bhd’s (TBE) RM4.5 bil Islamic MTN Programme (2021/2041) (the Sukuk). In doing so, we have reviewed all the relevant transaction documents and the revised financial model. These are in line with our expectations, similar to when the preliminary ratings had been assigned (and subsequently published on 30 December 2020). Please refer to our final rationale on TBE for further details on the assigned rating.
TBE is an independent power producer 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 with Tenaga Nasional Berhad, expiring in March 2041. Proceeds from the Sukuk will be utilised to repay all amounts owed by TBE to its 100%-owned turnkey contractor, Tanjung Bin Energy Issuer Berhad. The latter had earlier issued a RM3.29 bil Sukuk Murabahah (rated AA3/Stable by RAM), a RM700 mil term loan and a USD400 mil term loan to fund the construction of the Plant.
Chong Van Nee, CFA
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Ratings on Tanjung Bin Energy Sdn Bhd