NEWS & UPDATES

Sarawak Energy Berhad (“SEB”) hosted a presentation session for its existing and potential investors in Kuala Lumpur  today. SEB, which controls Sarawak state's electricity transmission and distribution infrastructure, held the session to share updates on the status and progress of its main projects and plans since its debut appearance in the market mid this year. It plans to raise further RM1.5 billion financing in early 2012 after the issuance of RM3.0 billion of Sukuk under its RM15.0 billion Sukuk Musyarakah Programme in June 2011, which was three times over-subscribed.

The presentation was delivered by its Chief Executive Officer, Mr Torstein Dale Sjøtveit and attended mainly by representatives from various financial institutions, asset and fund management companies, insurance companies and pension funds.

The presentation confirmed that SEB is now turning the State Government’s vision for the Sarawak Corridor for Renewable Energy (SCORE) into realty. The Samalaju industrial park has come alive, as SEB’s energy intensive customers are investing billions of Ringgit in constructing their new plants. The company has reached agreement with SCORE and export customers for more than 1700MW of additional demand. The tariff prices now achieved with SCORE customers are more than 40 per cent higher than the levels negotiated in 2009.

Buoyant customer demand follows SEB’s signing of a power purchase agreement (PPA) for the entire electricity output of the Bakun Hydroelectric project (Bakun), which is now dispatching energy into the Sarawak grid. SEB’s next major project, the Murum Hydroelectricity facility is now more than 50% complete and is on track to commence commercial operation in 2014.

Looking further ahead, SEB has developed a strong pipeline of future generation projects, including the Balingian coal fired plant, and the Baram, Limbang and Lawas  hydroelectric projects.

The combination of strong demand, rising prices and the organizational capacity required to execute this massive infrastructure agenda will propel SEB’s growth and financial performance for the remainder of this decade.

The proceeds of the proposed RM1.5 billion issuance in January 2012 will be utilised by SEB to fund the progress payments of some of its power plants and transmission lines currently being constructed as well as other capital expenditure requirement. The Sukuk Musyarakah Programme is assigned a long-term rating of AA1 by RAM Rating Services Berhad.

AmInvestment Bank Berhad, Kenanga Investment Bank Berhad and RHB Investment Bank Berhad are the Joint Lead Managers/Joint Bookrunners for this proposed second Sukuk issuance under the Sukuk Musyarakah Programme. The Principal Adviser/Lead Arranger for the Sukuk Musyarakah Programme is RHB Investment Bank Berhad.