TNB Achieves Financial Close for LSS4 towards A Sustainable Future
Tenaga Nasional Berhad (TNB) through its wholly-owned Special Purpose Vehicle company, TNB Bukit Selambau Solar Dua Sdn Bhd (TBSS2) has secured financing up to RM185 million for Large Scale Solar Mentari (LSS4) or its third Large Scale Solar (LSS) project in Bukit Selambau, Kuala Muda, Kedah under the government's Large Scale Solar@Mentari or Large Scale Solar 4 (LSS4) program.
TBSS2 has successfully completed the Financial Close on 30 September 2022 as scheduled. The solar project capacity is 50MWac (75MWdc). TBSS2 is expected to achieve its commercial operations in December 2023. The solar farm is being developed on an area of 175 acres, next to TNB's second LSS in Bukit Selambau. A financing amount of up to RM185 million is secured for the development.
With the prevailing challenging market conditions, it is a significant achievement that the project has achieved its Financial Close, enabling financing for the LSS project. This success has been partly attributed to the Energy Commission’s support in approving a 4-year extension of the PPA from 21 years to 25 years. CIMB Islamic Bank Berhad will be providing debt funding for the project for up to RM185.0 million.
TNB President and Chief Executive Officer, Dato’ Indera Ir. Baharin Din described the LSS project as a step forward towards achieving its sustainability pathway and ESG targets, as well as ensuring continued business growth for the national utility company.
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