Tuesday, December 13, 2011

Sarawak Energy to raise RM1.5b in 2012 for projects

KUALA LUMPUR (Dec 13): Sarawak Energy Bhd plans to raise RM1.50 billion in January 2012 to finance the progress payments of some of its power plants.

The RM1.5 billion financing plan would also be used to finance the transmission lines under CONSTRUCTION [] and other capital expenditure, Sarawak Energy said at a presentation for its existing and potential investors here on Tuesday.

AmInvestment Bank Bhd, Kenanga Investment Bank Bhd and RHB Investment Bank Bhd are the joint lead managers/joint bookrunners for this proposed second issuance under the Sukuk Musyarakah programme. RHB Investment Bank Bhd is the principal adviser/lead arranger for the Sukuk Musyarakah programme.

To recap, in June 2011, Sarawak Energy had issued RM3.0 billion of Islamic debt notes under its RM15.0 billion Sukuk musyarakah programme in June 2011, which was three times over-subscribed. RAM Rating Services Bhd has assigned a long-term rating of AA1 for the programme.

'The presentation confirmed that Sarawak Energy is now turning the State Government's vision for the Sarawak Corridor for Renewable Energy (SCORE) into realty,' it said.

Sarawak Energy said its energy intensive customers were investing billions of ringgit to build their plants at the Samalaju industrial park.

The company has also reached agreements with SCORE and export customers for more than 1,700MW of additional demand. The tariff prices with SCORE's customers were more than 40% higher than the levels negotiated in 2009.

Sarawak Energy was contracted to purchase the entire electricity output of the Bakun Hydroelectric project (Bakun), which had started dispatching electricity to the Sarawak grid.

Its next major project, the Murum Hydroelectricity plant was more than 50% complete and is on track to start commercial operations in 2014.

Sarawak Energy, which controls Sarawak state's electricity transmission and distribution infrastructure, held the session to provide updates on the status and progress of its main projects and plans.

Its chief executive officer, Torstein Dale Sj''tveit conducted the presentation which was attended mainly by representatives from various financial institutions, asset and fund management companies, insurance companies and pension funds.

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