Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Oct 8): Malaysia sovereign fund 1Malaysia Development Bhd (1MDB) will raise 8.4 billion ringgit ($2.56 billion) with Islamic bonds to build a power plant, IFR reported on Wednesday.

1MDB, which is chaired by Prime Minister Najib Razak, is partners with Mitsui & Co Ltd on the 2,000 megawatt coal-fired plant, known as Project 3B.

The consortium will rely on Islamic bonds to cover most of the 11 billion ringgit needed for the project, after plans to raise 8.4 billion ringgit via a debt programme led by Japan Bank for International Cooperation fell through, IFR said.

AmInvestment Bank is the sole lead manager on the sukuk, which has been set to close by November, it added.

1MDB had won the tender for Project 3B in February this year, beating YTL Power International, Tenaga Nasional Bhd and Malakoff Corp Bhd. The greenfield power plant is expected to start operations in 2018 and run for 25 years.

The fund, which owns 16 power and desalination plants in six countries, is preparing to list its power assets in January with an IPO of $3 billion, after financing a second debt refinancing agreement this month, Reuters reported on Tuesday .

Plans for the IPO, which is aimed at helping 1MDB cut down a debt of over $11 billion, had been delayed due to a longer-than-expected due diligence process and negotiations surrounding its first debt refinancing agreement. (1 US dollar = 3.2750 Malaysian ringgit)

      Print
      Text Size
      Share