1MDB Says IPO of Power Assets Scheduled for Second Half of 2014Niluksi Koswanage
1Malaysia Development Bhd., a state investment fund advised by Prime Minister Najib Razak, said an initial public offering for its energy assets is scheduled for the second half of this year after a report it may be delayed to 2017.
The share sale will probably be pushed back because the company is experiencing delays in bringing some of its power generation capacity online, the Star newspaper reported today, citing people it didn’t identify. 1MDB received a six-month extension on a 6.17 billion ringgit ($1.9 billion) bridge loan due this month, giving it more time to carry out the IPO, Reuters reported May 21, citing people familiar with the matter that it didn’t identify.
“Our IPO is scheduled for the second half of 2014,” the company said in an e-mailed reply to questions from Bloomberg News.
The fund has 25 billion ringgit of total bonds and loans outstanding, data compiled by Bloomberg show. Its debt grew to 36.3 billion ringgit by the end of March 2013 from 7.9 billion ringgit a year earlier, according to its latest annual report.
1MDB has built an energy business by acquiring assets from Malaysian billionaire T. Ananda Krishnan and Genting Bhd. The company has 3,080 megawatts of local generating capacity and 2,490MW overseas, according to its website.