16 May 2002 – Malaysia’s New Straits Times reported Thursday that the country’s largest utility Tenaga Nasional Bhd, is preparing to raise up to 1.5bn ringgit, or $395m, locally to help fund its capital expenditure.
The paper quoted a source, saying state-controlled Tenaga was expected to issue the loan papers in the private debt securities market in July. Tenaga officials were not immediately available for comment.
The utility giant, is projecting slower electricity demand growth, and had cut its capital expenditure by 26 percent to 5.7bn ringgit for the year to August 31, 2002, from 7.7bn ringgit in FY2001.
Tenaga’s upcoming investments may include the purchase of Dynamic Acres Sdn Bhd, which owns a 30-year coal mining concession in Indonesia, for 226m ringgit.
The power firm’s total debt stood at 28bn ringgit as at end-February, of which 52 per cent is in foreign currency. Tenaga has said it plans to reduce its foreign currency-denominated borrowings to 20 per cent of total debt by 2005.