S&P rates Tenaga certificates BBB+

S&P said it assigned a BBB+ rating to the $750 million wakala trust certificates 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 agency explained. TNB Global Ventures entered into a wakala agreement with Tenaga Nasional Bhd.

The rating on the certificates is based the long-term foreign-currency corporate credit rating on Tenaga because the transaction fulfills the agency’s five conditions of criteria for rating a sukuk, S&P said.

Tenaga will provide sufficient and timely contractual obligations for the repayment of the periodic distribution amounts and the principal amount through the purchase undertaking and the murabaha agreement), the agency said.

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

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