1MDB to list power assets in January

KUALA LUMPUR: Malaysian sovereign fund 1Malaysia Development Bhd (1MDB) is preparing to list its power assets in January, seeking to raise more than US$3bil (RM9.78bil) after finalising a second debt refinancing agreement this month, sources with direct knowledge of the matter said.

Plans for the initial public offering (IPO), which is aimed at helping 1MDB cut down a debt burden exceeding US$11bil (RM35.85bil), had been delayed due to a longer-than-expected due diligence process and negotiations surrounding its first debt refinancing agreement.

1MDB, which owns 16 power and desalination plants in six countries, was aiming to file its listing application later this month, three people familiar with the matter told Reuters.

“A listing will be in January if the application goes through,” one of the sources on the IPO timing said. The people declined to be identified as the matter has not been disclosed officially.

1MDB, whose advisory board is chaired by Prime Minister Datuk Seri Najib Tun Razak, is also close to signing a US$1bil (RM3.26bil) one-year loan to refinance group debt, Basis Point, a Thomson Reuters publication, reported citing sources. That follows the restructuring of a RM5.5bil bridging loan into two tranches in May. — Reuters