Tenaga Nasional Bhd got more than US$1.25bil (RM4.15bil) of orders from 94 accounts for sale of US$750mil 10-year Sukuk, according to Bloomberg.
By region, Asia accounted for 82%, Europe 15% and Middle East 3%. By investor type, fund managers accounted for 44% and banks 42%.
Last week, Tenaga’s multicurrency sukuk issuance programme was rated BBB by S&P Global Ratings. The power giant’s special-purpose company TNB Global Ventures Capital Bhd was tasked to undertake the issuance of the US$1bil wakala trust certificates.
“We base the preliminary ‘BBB’ issue rating on the wakala trust certificates on the ‘BBB’ rating on the wakala sukuk programme. The rating on the wakala sukuk programme is one notch below the ‘BBB+’ issuer credit rating on TNB, reflecting significant subordination of the senior unsecured debt relative to other debt in Tenaga’s consolidated capital structure,” it said.
S&P said the proposed transaction fulfills the five conditions of its criteria for rating sukuk. The rating agency said it assessed as remote the risk that a total loss event (TLE) jeopardises the full and timely repayment of the trust certificates.
“Our opinion is based on our expectations that if lease assets form part of any drawdown, they will come from a diversified portfolio of assets. Nevertheless, S&P Global Ratings will reassess the remoteness of the TLE for each drawdown separately based on the actual composition of the lease assets portfolio, and may assign a different rating to the drawdown if our initial assumptions are not met,” it said.
S&P said the preliminary rating on the trust certificates was based on draft documentation and information as of Oct. 15, 2018. The final ratings will depend upon receipt and satisfactory review of all final transaction documentation.
Earlier, Reuters reported TNB hired BNP Paribas, CIMB, Citigroup and HSBC for a series of fixed income investor meetings in Asia and Europe ahead of a potential US dollar Reg S bond offering.
Source The Star