Malakoff Corporation take the plaudits for Tanjung Bin
Tanjung Bin Energy Sdn Bhd (TBE), a subsidiary of Malakoff Corporation Berhad (Malakoff/Company), has been awarded four prestigious industry awards namely, Project Finance International’s (PFI) Asia Pacific Best Project Bond of the Year 2012, The Asset’s AAA Best Project Finance Deal, Project Finance Magazine’s (PFM) Asia-Pacific Power Deal of the Year, and Asia Money’s Best Project Financing Award, for its RM6.5 billion (US$2.1 billion) senior loan for the 1,000 MW TBE Power Plant.
The accolades from these industry international publications were in recognition of TBE’s innovative financing facilities, which are the first Islamic project bond and loans denominated in Malaysian ringgit and US dollar granted to a Malaysian IPP. The bonds have been given a rating of AA3 by RAM Holdings Berhad.
Zainal Abidin Jalil, the Chief Executive Officer of Malakoff said, “We are honoured to have received this recognition from PFI, The Asset, PFM and Asia Money for our TBE Power Plant project. I believe these awards reflect Malakoff’s commitment to deliver a creative, innovative financing solution, enabling Malakoff Group to be the leading independent power producer not only in Malaysia, but also within the fast-growing ASEAN region.”
“Importantly, I believe these accolades serve as an acknowledgement of the successful partnership formed between Malakoff Group and our financiers as well as legal partners,” he added.
The award winning financing deal was developed for the TBE Power Plant project. It is Malaysia’s first and largest limited recourse financing facility encompassing the issuance of a 20-year RM3.29 billion serially-amortising senior secured Islamic bond (Senior Sukuk), a 15-year senior USD400 million term loan and a 12-year senior RM700 million term loan.
Meanwhile, the financing’s junior facility comprised of a five-year equity loan of RM1.29 billion. The financing deal was released to prospective financiers in November 2011 and reached financial closing in February 2012.
The bonds’ tranches were broken down into several maturities and on partially amortising terms for the senior debt to sufficiently diversify risk. Further to this, the junior facility equity tranche includes a 100% balloon repayment at maturity.
The TBE Power Plant project is the first competitive tender procurement for power generating capacity in the country. It is expected to be completed in 2016, to cater to the increasing demand for power in the Iskandar development region in Johor. According to the South Johor Economic Region Comprehensive Development Plan 2025, the projected demand for power within the region is estimated to grow from 1,479 MW in 2010 to 2,254 MW in 2020.
ABOUT MALAKOFF GROUP
Malakoff Group is a leading Independent Water and Power Producer (IWPP) with core focus on power generation, water desalination and operations & maintenance services.
Malakoff Group is Malaysia’s largest independent power producer with effective power generation capacity of 5,020 MW from the six power plants owned by its subsidiaries and associates.
As part of its global expansion plans, Malakoff Group has power and water ventures in Saudi Arabia, Algeria, Kuwait and Bahrain. The Company is also making inroads into the fast growing South-East Asian markets.
Malakoff believes in working together with all stakeholders in productive partnerships. As such, the Company takes pride in being a responsible operator and a good corporate citizen in communities where it operates.
Malakoff is a subsidiary of MMC Corporation Berhad.
For more details on the Company, please visit its corporate website at www.malakoff.com.my.