September 3, 2009 - KUALA LUMPUR (Dow Jones)--Malaysia's state-owned power firm Tenaga Nasional Bhd. (5347.KU) and its partners are considering raising MYR10 billion via bonds to fund its undersea cable project to transmit power from Borneo Island to Peninsular Malaysia, Chief Executive Che Khalib Mohamad Noh said Friday.
"We are looking at such a possibility and have hired CIMB as the financial adviser...MYR10 billion is a ballpark number," Che Khalib told Dow Jones Newswires.
He declined to give details as the proposal is still in its preliminary stages.
Tenaga, Sarawak state government unit Sarawak Energy Bhd. (2356.KU) and the Ministry of Finance are undertaking the cable project that involves laying a 730-kilometre high-voltage direct current, or HVDC, transmission line and a 670-km undersea cable for the 2,400-megawatt Bakun hydroelectric dam.
Che Khalib said the three parties are still working out the shareholding structure of the consortium and will likely open the tender for the project in the first quarter of next year.
-Dow Jones Newswires
