Zul Rafique & Partners led by Partners, Loh Mei Mei and Jayden Chuah, supported by Legal Associate, Wong Ke Ying, are pleased to have acted as legal counsel to CIMB Investment Bank Berhad and Maybank Investment Bank Berhad in relation to the issuance of ASEAN Green SRI Sukuk Wakalah of up to RM1.05 billion under the Shariah principle of Wakalah Bi Al-Istithmar by TNB Kuala Muda Solar Sdn Bhd.
The ASEAN Green SRI Sukuk Wakalah was structured in accordance with the Securities Commission Malaysia’s Sustainable and Responsible Investment Sukuk Framework, the ASEAN Green Bond Standards, the ICMA Green Bond Principles, and Tenaga Nasional Berhad (“TNB”)’s Transition Finance Framework.
Proceeds from the sukuk issuance will primarily finance the development, construction, operation and maintenance of a 500MWac large-scale photovoltaic solar power plant in Kuala Muda, Sungai Petani, Kedah, marking this as the TNB Group’s largest renewable energy venture and the largest solar plant in Malaysia to date.
The transaction also features notable credit enhancement and liquidity support mechanisms, including the provision of a sponsor’s undertaking by TNB Renewables Sdn Bhd to fund project cost overruns and provide additional liquidity support through subordinated shareholder advances, equity subscriptions, standby letters of credit and/or corporate guarantees within the TNB Group.
We congratulate all parties involved on the successful completion of this landmark green financing transaction, which marks another significant step forward in supporting Malaysia’s renewable energy transition and sustainable finance ecosystem.
