TNB Establishes Transition Finance Framework, The First by An Electricity Utility Player in ASEAN

24/09/2024

Tenaga Nasional Berhad (TNB) marks a significant milestone in its energy transition journey by establishing its inaugural Transition Finance Framework, making it the first electricity utility player in ASEAN to do so.

Maybank Investment Bank Berhad acted as Sustainability Framework Adviser for the development of the Framework, which has obtained a Second-Party Opinion by Morningstar Sustainalytics.

The Framework is a set of guidelines to reinforce the link between TNB's financing and energy transition strategy by outlining criteria for existing or new projects that contribute to this transition in adherence with relevant market best practices, including the ASEAN Taxonomy for Sustainable Finance Version 2 and the ASEAN Transition Finance Guidance.

Under this Transition Finance Framework, TNB will be able to issue labelled green, social and/or sustainability debt instruments, including Sustainable and Responsible Investment (“SRI”) Sukuk, as well as transition-labelled debt instruments to fund projects which will
deliver positive societal and environmental impacts.