Wednesday December 14, 2011
SEB to issue more sukuk to meet additional RM1.5bil to fund power plant projects
By DANIEL KHOO
KUALA LUMPUR: Sarawak Energy Bhd (SEB) plans to borrow an additional RM1.5bil in January 2012 in the form of Islamic debt (sukuk) under its RM15bil Sukuk Musyarakah Programme. This is in addition to its issuance of RM3bil of sukuk in June this year which was oversubscribed by three times.
The RM1.5bil obtained next year would be used by SEB to fund the progress payments of some of its power plants and transmission lines currently being constructed as well as other capital expenditure requirements, the company said in a statement yesterday. It had presented its plans for existing and potential investors here yesterday.
The Sukuk Musyarakah Programme has a long-term rating of AA1 by RAM Rating Services Bhd. AmInvestment Bank Bhd, Kenanga Investment Bank Bhd and RHB Investment Bank Bhd are the joint lead managers/joint bookrunners for this second sukuk issuance under the Sukuk Musyarakah Programme. The principal adviser/lead arranger of the sukuk is RHB Investment Bank Bhd.
SEB said demand for electricity in Samalaju industrial park was strong and that its energy intensive customers were investing billions of ringgit to construct new plants there.
“The company has reached an agreement with Sarawak Corridor for Renewable Energy (SCORE) and export customers for more than 1700MW of additional demand. The tariff prices now achieved with SCORE customers are 40% higher than the levels negotiated in 2009,” it said in the statement.
SEB had also signed a power purchase agreement for the entire electricity output of Bakun Hydroelectric project that is supplying energy to Sarawak's electricity grid.
Meanwhile, its next project, the Murum Hydroelectricity facility is more than 50% complete and SEB said that it was on track to commence commercial operations for this facility in 2014.
Future energy production projects that the company will be undertaking include the Balingian coal fired plant and the Baram, Limbang and Lawas hydroelectric projects.
“The combination of strong demand, rising prices and the organisational capacity required to execute this massive infrastructure agenda will propel SEB's growth and financial performance for the remainder of this decade,” it said.
SEB controls Sarawak's electricity transmission and distribution infrastructure. Its presentation yesterday was delivered by CEO Torstein Dale Sjtveit.