SINGAPORE (Reuters) - Malaysia's state fund 1MDB is close to signing a US$1 billion one-year loan to refinance group debt ahead of an initial public offering (IPO) of its power business, Basis Point reported on Tuesday citing sources.

Six banks have participated in the financing, including Deutsche Bank which led the deal, sources said.

The loan will give 1MDB more time to prepare for the IPO which is seeking to raise more than US$3 billion, sources said.

1MDB officials were not immediately available to comment.

1MDB, seen as a cross between a sovereign wealth fund and a private investment vehicle, is struggling with a debt burden exceeding US$11 billion.