Malakoff Signs US$90 Million Financing Facility

KUALA LUMPUR, May 14 (Bernama) -- Malakoff Corporation Bhd, a subsidiary of MMC Corporation Bhd, has signed a US$90 million financing agreement for its 40 per cent acquisition of an indirect interest in Bahrain's largest independent power generation and water desalination plant, Hidd Power Company BSC (HPC). The agreement signing Monday between Exim Bank of Malaysia and Mizuho Corporate Bank marks the completion of the US$90 million term loan facility provided to Malakoff's subsidiary, Malakoff International Limited, by Mizuho and Exim. HPC is the owner and operator of a build-own-operate power generation and water desalination plant in Bahrain, with a total 929MW power capacity and 90 MIGD (million Imperial Gallons per day) of water desalination. Malakoff Chief Executive Officer Zainal Abidin Jalil said besides the Middle East, Malakoff was also exploring other growth opportunities, especially in the fast-growing Southeast Asia markets. "The company has already won and implemented projects in Saudi Arabia and Algeria. "The current move to expand Malakoff's presence into Bahrain will further solidify its position as a leading independent water and power producer regionally," he said at the signing ceremony here. Malakoff plays a prominent role in Malaysia's energy sector as the country's largest independent power producer with a net generating capacity of 5,020MW from its six power stations. The company recently won the competitive bid to expand its Tanjong Bin coal-fired power plant by another 1,000 MW. "Currently, local projects contribute about 95 per cent to revenue," Zainal Abidin said. "As part our our expansion plans, Malakoff has power and water ventures in Saudi Arabia, Algeria, Kuwait and Bahrain. "The company is also making inroads into the fast growing Southeast Asian markets," he said. Malakoff, a leading independent water and power producer with a core focus on power generation, water desalination and operations and maintenance services plans to undertake an initial public offering (IPO) by next year. -- BERNAMA