Bankers say company stops bond sale, to pull out of RM12bn power project.
KUALA LUMPUR: A proposed RM8.4 billion bond sale by the troubled government-owned investment company 1Malaysia Development Bhd has been called off, and the company is expected to pull out of a power plant project in Negeri Sembilan, Reuters reported today.
The agency, quoting anonymous banking sources, said the RM8.4bn sukuk (Islamic bonds) was to raise funds for the power plant, known as 3B.
“It (the sukuk issue) has been called off, they are not moving ahead with the exercise any more,” Reuters quoted a banker as saying.
1MDB was also expected to pull out of the US$3.6 billion (RM12.7 billion) 3B project, involving construction of a 2,000mW coal-fired power plant.
The company has 16 power and desalination plants in six countries. It has faced severe criticism over its troubled finances of nearly US$12 billion (RM42.5 billion) in debts, and its inability to repay a RM2bn loan.
Tenaga Nasional is expected to take over the 3B project, which was expected to start operations in 2018 and run for 25 years. 1MDB and Tenaga Nasional declined comment.
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