This is Edra Global Energy Bhd's Powertek plant in Teluk Gong, Malacca. 1Malaysia Development Bhd (1MDB) sold Edra's entire energy assets to China General Nuclear Power Corp (CGN). (Pix taken by Hafidz Mahpar for Star Online)
KUALA LUMPUR: Malaysian independent power producer Edra Power Holdings has hired three domestic banks to raise RM5.28bil through a sukuk programme, two sources familiar with the deal said on Thursday.
The wholly-owned unit of China General Nuclear Power Corp hired CIMB Investment Bank as the sole principal adviser and financial adviser, while Maybank Investment Bank and RHB Investment Bank are joint lead managers for the debt programme.
Roadshows for the sukuk are under way, and the company plans to launch it before the year-end, a source said. The sources declined to be named because of the private nature of the deal.
According to IFR, a Thomson Reuters publication that reported the deal earlier, Edra met with investors in Kuala Lumpur on Thursday.
Edra has been seeking an IPO this year. In February, it withdrew its request for a proposal to hire banks for its IPO and then relaunched it in May, targeting to raise US$500mil to US$1bil.
A document seen by Reuters showed that the company had aimed to list by the last quarter of this year.
A source close to the deal said Edra’s plans to raise funds via an IPO remained intact, despite the huge debt issuance.
“Yes, they are still talking about their IPO plans. Their balance sheet is healthy, that’s why they can leverage to take on projects,” the source said.
The company is Malaysia’s second-largest independent power producer. Formerly owned by state fund 1MDB, it was sold to China General Nuclear Power Corp in 2015. - Reuters
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