Petronas Gas Bhd’s (Pet- Gas) subsidiary, Kimanis Power Sdn Bhd, has received approval from the Securities Commission (SC) for the proposed issuance of up to RM1.16 billion nominal value Islamic securities.
In an exchange filing last Friday, the natural gas supplier said that the sukuk programme, rated AA- by the Malaysian Rating Corp Bhd, will have a tenure of 16 years from the date of first issue of the Sukuk Kimanis under the sukuk programme.
“The proceeds of the Sukuk Kimanis shall be utilised for Shariah-compliant purposes by Kimanis to part finance all costs associated with the 285MW Kimanis power plant project and to meet the working capital requirements in relation to the project," PetGas said in the filing.
“Besides that, the sukuk will also be utilised for any costs and expenses incurred by Kimanis in implementing and maintaining the sukuk programme.”
It was reported in July last year that PetGas planned to raise RM1.2 billion either through a termloan or sukuk to part finance the gas-fired Kimanis power plant in Sabah.
“The project financing will be 80% of the total cost of the RM1.5 billion power plant, while the remaining 20% will be funded via equity,” the report quoted PetGas’ chairman Datuk Anuar Ahmad as saying.
PetGas said that it is expected that the sukuk programme will consist of two series of which Series 1 has tenures of up to 16 years and an aggregate nominal amount of RM860 million and Series 2 with tenures of up to 10½ years and an aggregate nominal amount of RM300 million. PetGas owns 60% of Kimanis Power.