MALAYSIA:
1Malaysia Development (1MDB), strategic development company and
investment arm of the Malaysian government has commenced activities for
the listing of its energy assets in an estimated US$3 billion initial
public offering (IPO), one of the country’s biggest IPO exercise.
With
an aim to list on Bursa Malaysia in the fourth quarter of this year,
1MDB will utilize the proceeds to fund future business growth, for
partial repayment of its outstanding debt and general corporate
purposes.
The
sovereign investment arm has an outstanding RM5 billion (US$1.57
billion) Sukuk issued back in 2009, due to mature in 2039. In February
this year, the group announced its plans to issue RM2.4 billion
(US$745.07 million) in unrated Sukuk to private buyers to finance the relocation
of eight defense units, with a proposed tenor of one to 10 years.
1MDB
has also been given the mandate to coordinate the development of the
Malaysian Tun Razak Exchange project which has an indicative gross
development value of RM26 billion (US$8.17 billion) and is expected to
become a global centre for international Islamic and conventional
finance.
Under
its energy portfolio, 1MDB owns 16 power and desalination plants in six
countries, including Egypt, Sri Lanka, Bangladesh, Pakistan and the
UAE. The group has a net power generation capacity of 5570 MW. In
Malaysia, the group is the second largest independent power producer in
the country, with assets including Powertek, which operates three power
plants in Melaka, Kuala Langat Power Plant in Selangor and coal-powered
Jimah Energy in Negeri Sembilan.
1MDB
has appointed Deutsche Bank and Maybank as its joint global
coordinators for the exercise. Maybank and AmBank, have been selected
as joint principal advisors while Goldman Sachs acts as the advisor for
the IPO.
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