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Malaysia's 1MDB secures second extension on $2.4b loan: sources

Published on May 21, 2014 1:19 PM

KUALA LUMPUR/SINGAPORE (Reuters) - State investor 1Malaysia Development Bhd (1MDB) has won a six-month extension on a US$1.9 billion (S$2.4 billion) bridge loan, giving it more time to launch a planned initial public offering (IPO) of its power assets to cut debt, people familiar with the matter said.

The IPO, which aims to raise as much as US$2 billion and is seen as critical to reducing the fund's debt load, is now expected in the second half of this year, the people said.

Bankers had initially said the IPO could come by mid-year, but it has been pushed back due to delays related to a tender to build a coal-fired power plant that it ultimately won, as well as delays in publishing its financial accounts after a change in auditors.

It is the second six-month extension on the loan for 1MDB , whose advisory board is chaired by Malaysian Prime Minister Najib Razak. The 6.17 billion ringgit loan from Maybank Investment Bank is now due in November, said the people, who declined to be identified as the matter is private.

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