[RAM] RAM Ratings closely monitoring events following fire at Tanjung Bin Energy plant

RAM Ratings is following closely the developments at Tanjung Bin Energy Sdn Bhd's (TBE) 1,000 MW ultra-supercritical coal-fired power plant in Tanjung Bin, Johor (the Plant) after a fire on 2 October 2025 reportedly damaged the Plant's chimney and flue gas desulfurisation (FGD) system. Designed to reduce sulfur dioxide emissions, the FGD system supports the overall operations of the Plant. TBE is currently exploring all possible options to allow the Plant to operate as soon as possible. 

With investigations still ongoing, RAM will assess the credit implications for TBE's AA₃-rated RM4.5 bil Islamic MTN Programme (2021/2041) (the Sukuk) once further details become available. Our assessment will focus on the extent of revenue loss, the proposed restoration plan, capital expenditure required for repairs and the potential reprieve from insurance claims. 

In the immediate term, the Sukuk is supported by cash and cash balances of RM183 mil (as at 6 October 2025) as well as standby letters of credits procured by Malakoff Corporation Berhad – TBE's sole shareholder – to meet the minimum required cash reserve balances under the terms of the Sukuk. These resources adequately cover TBE's sukuk obligations of about RM394 mil due within the next 12 months. Malakoff has indicated that financial assistance could be extended if necessary. 

 

Analytical contacts
Liew Kar Ling
(603) 2708 8216
karling@ram.com.my

Chong Van Nee, CFA
(603) 2708 8210
vannee@ram.com.my

Media contact
Sakinah Arifin 
(603) 2708 8212
sakinah@ram.com.my