Kuala lumpur: Tenaga Nasional Bhd's (TNB) wholly owned subsidiary TNB Power Generation Sdn Bhd (TPGSB) has issued RM1.5 billion in nominal value of sustainability sukuk wakalah pursuant to the sukuk wakalah programme. In a Bursa Malaysia filing today, it said CIMB Investment Bank Bhd and Maybank IB are the joint lead managers and joint bookrunners for the RM1.5 billion sustainability sukuk wakalah.

According to BERNAMA News Agency, the proceeds raised from the issuance of the RM1.5 billion sustainability sukuk wakalah are intended for eligible projects that align with criteria set out in the TPGSB Sustainability Sukuk Framework. TPGSB aims to support TNB's sustainability goals and its commitment to addressing climate change by utilizing greener, cleaner, and more efficient power generation technology.

This sustainability funding initiative by TPGSB is meant to demonstrate TPGSB's commitment to supporting TNB's aspiration to reach net zero emissions by 2050, marking a move towards decarbonization and renewable energy. The RM1.5 billion sustainability sukuk wakalah is the third issuance from the sukuk wakalah programme and was issued in four tranches: tranche 1 (RM100 million); tranche 2 (RM300 million); tranche 3 (RM500 million); and tranche 4 (RM600 million).

The issuance saw an oversubscription of 5.33 times, with an order book size of RM8.0 billion compared to the issuance size of RM1.5 billion. The deal attracted a diverse range of investors, totaling over 51 accounts.