Tenaga Nasional Berhad (TNB), Malaysia’s leading utility company, has achieved a major milestone in renewable energy financing by issuing a Green Sukuk worth nearly MYR 1.05 billion (around USD 267 million). The funding will support the development and operation of a 500MWac solar power project in Kuala Muda, Kedah, which is expected to become the largest solar power plant in Malaysia. The project also marks TNB’s biggest investment in renewable energy so far, reflecting the company’s growing focus on clean energy development and sustainability goals.

The financing instrument, known as an Asean Green SRI Sukuk Wakalah, combines Islamic finance principles with international environmental standards. The sukuk complies with the Sustainable and Responsible Investment (SRI) Sukuk Framework introduced by the Securities Commission Malaysia, along with the ASEAN Green Bond Standards. Through this structure, the funds raised can only be used for projects that contribute positive environmental benefits, particularly reducing greenhouse gas emissions and supporting clean energy generation.

Legal advisory support for the transaction was provided by Zul Rafique & Partners, which acted for the joint lead arrangers CIMB Investment Bank and Maybank Investment Bank. The law firm ensured that the sukuk issuance complied with Malaysian securities regulations and the “Lodge and Launch” framework used for capital market products in the country. The successful issuance highlights the increasing role of green Islamic financing in supporting large-scale renewable energy projects across Southeast Asia.

TNB’s renewable energy subsidiary, TNB Renewables (TRe), is also playing an important role in the project. TRe has agreed to provide support for any potential construction cost overruns and will also offer liquidity assistance during the project’s early operational phase. This additional financial backing is expected to strengthen investor confidence and ensure long-term project stability.

Several companies are involved in the execution of the solar project. Atlantic Blue, a subsidiary of Solarvest Holdings, has been appointed to build the solar plant, while PESB Engineering will manage the electrical interconnection infrastructure. In the initial stages, Powertrack will oversee operations and maintenance activities before TRe eventually assumes responsibility for long-term management of the facility.

The project is seen as a major step in Malaysia’s transition toward cleaner energy sources. By successfully combining Islamic finance with renewable energy development, TNB has demonstrated a sustainable financing model for future infrastructure projects. The initiative is expected to increase Malaysia’s solar generation capacity while strengthening the country’s position as one of the leading green sukuk markets in the region.