KUALA LUMPUR Aug 16 Malaysia's RAM Ratings assigned a rating of AA2 on Malaysian independent power producer (IPP) Tanjung Bin Power Sdn Bhd's proposed sukuk Ijarah program of up to 4.5 billion ringgit ($1.44 billion) in nominal value on Thursday.
The company was roped in to construct, own and operate a coal-fired power plant in the southern state of Johor, under an agreement with government-linked power producer Tenaga Nasional Bhd.
Proceeds from the sukuk will be used to refinance an existing debt facility, Tanjung Bin has previously said. It will also go towards working capital purposes or to provide payment to its shareholders. ($1 = 3.1245 Malaysian ringgit) (Reporting By Al-Zaquan Amer Hamzah; Ediitng by Niluksi Koswanage)