S&P rates TNB Global certificates BBB+

S&P said it assigned a preliminary BBB+ rating to the proposed $750 million wakala trust certificates to be issued by TNB Global Ventures Capital Bhd. under its multi-currency sukuk issuance program.

TNB Global Ventures is a special-purpose company incorporated in Malaysia for issuing trust certificates.

The company will enter into a "wakala" agreement with Tenaga Nasional Bhd., an integrated utilities company whose 60% shareholding is with government agencies and corporations, the agency explained.

The preliminary rating on the wakala trust certificates reflects the long-term foreign-currency corporate credit rating on Tenaga because the transaction fulfills the five conditions of the criteria for rating sukuk, S&P said.

Tenaga will provide sufficient and timely contractual obligations for the repayment of the periodic distribution amounts and the principal amount, the agency said.

The obligations of Tenaga are irrevocable and unconditional and these obligations will rank pari passu with Tenaga's other unsecured unsubordinated financial obligations, S&P said.

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