KUALA LUMPUR, July 4 (Reuters) - A subsidiary of Tenaga Nasional Bhd, Malaysia’s largest power utility, plans to issue 2 billion ringgit ($628 million) worth of sukuk, or Islamic bonds, to pay outstanding debt and provide working capital.
The bonds, to be issued by Tenaga’s 60 percent owned Kapar Energy Ventures Sdn Bhd, will have a tenor of up to 13 years, according to a local stock exchange filing late on Wednesday.
It has been assigned a final rating of AA+IS by Malaysian Rating Corporation Bhd and is expected to be issued on Friday, Tenaga said.
After the issuance, Tenaga’s consolidated gearing would rise to 0.41 times from 0.39 times, based on its balance sheet for the financial year ended Aug. 31, 2012.
AmInvestment Bank Bhd is the principal adviser, lead arranger and lead manager for the deal. AmBank (M) Bhd is the primary subscriber for the issuance. ($1 = 3.1865 Malaysian ringgit) (Reporting By Yantoultra Ngui; Editing by Richard Pullin)