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Press Release
31 Mar | Wednesday
RAM Ratings assigns final AA3/Stable rating to Tanjung Bin Energy’s RM4.5 bil sukuk
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.
 
Published on 30 March 2021
 
Analytical contact
Chong Van Nee, CFA
(603) 3385 2482
vannee@ram.com.my
 
Media contact
Padthma Subbiah
(603) 3385 2577
padthma@ram.com.my
 
The credit rating is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.
 
RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.
 
Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.
 
© Copyright 2021 by RAM Rating Services Berhad
source: RAM Ratings
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