TNB Launches Transition Finance Framework, Leading ASEAN’s Future

Tenaga Nasional Bhd (TNB) has become the first electricity utility in ASEAN to launch a Transition Finance Framework. This framework, developed with the guidance of Maybank Investment Bank Bhd and receiving a second-party opinion from Morningstar Sustainalytics, outlines criteria for financing energy transition projects. It adheres to various best practices, including the Asean Taxonomy for Sustainable Finance and the Asean Transition Finance Guidance.

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TNB Drives Sustainable Energy Transition

The framework allows TNB to issue green, social, sustainability, and transition-labelled debt instruments, such as Sustainable and Responsible Investment Sukuk (SRI Sukuk), to fund projects that deliver positive societal and environmental impacts.

TNB president and CEO Datuk Megat Jalaluddin Megat Hassan emphasized, “TNB is delighted to be the first electricity utility player in Asean to establish a Transition Finance Framework,” and added that the framework will accelerate Malaysia’s energy transition program.

Maybank president and group CEO Datuk Khairussaleh Ramli praised the initiative, saying, “Maybank is honoured to support TNB in its transition journey.”

The framework aligns with several international, regional, and local sustainable finance guidelines and principles, including the International Capital Markets Association and the Asean Capital Markets Forum’s standards. Morningstar Sustainalytics deemed TNB’s framework credible, impactful, and aligned with key sustainability bond and loan principles.