Sarawak Energy Debt Claims Are False

Sarawak, Kuching – Wednesday 18 July, 2012 – Sarawak Energy Berhad (SEB) rejects the claims made in relation to the Corporation’s debt in the press today.

In response to claims made by YB Chong Chieng Jen, SEB Chief Executive Officer Mr Torstein Dale Sjøtveit said “SEB established a Sukuk Musyarakah Programme in June 2011 of up to RM15 billion, to finance its capital expenditure requirements.

“The Principal Adviser and Lead Arranger of this programme is RHB Investment Bank Berhad, with AM Investment Bank Berhad, RHB Investment Bank Berhad and K&N Kenanga Investment Bank Berhad as Joint Lead Managers.”

Mr Sjøtveit went on to say “Consistent with SEB’s strong financial position, the programme is assigned a long term rating of AA1 by RAM Rating Services Berhad.”

“To date, SEB has issued and raised a total of RM5.5 billion from the programme in two issuances, the first being in June 2011 and the latest in January 2012. Both issuances were well received by the market with an oversubscription rate of more than 3 times, reflecting strong market confidence on the financial and operational strength of SEB.”

“Other than the above Sukuk programme, SEB has in 2006 raised RM880 million through Sukuk Musyarakah and Sukuk Mudharabah programme to finance its 270 MW Coal-Fired Power Plant in Mukah.  The outstanding balance from this programme is RM740 million at the moment.  Other than that, Sarawak Energy has no other major debt obligations.”

Mr Sjøtveit concluded “As the State’s largest Government-Linked Company, we accept that SEB’s activities are a legitimate topic of public interest.”

“However, in addition to causing needless apprehension among the general public; misstatements of this nature have the potential to damage the corporation’s credibility among investors.”

“We therefore respectfully request that anyone with questions or concerns contact us directly before spreading misinformation through the press.”