Malakoff Corporation Berhad (Malakoff), a subsidiary of MMC Corporation Berhad, today announced the closing of the US$ 90 million financing agreements jointly arranged by the Mandated Lead Arrangers (“MLAs”) Mizuho Corporate Bank (Mizuho) and EXIM Bank of Malaysia (EXIM Bank) in conjunction with Malakoff’s acquisition of a 40 per cent indirect interest in Bahrain’s largest independent power generation and water desalination plant, Hidd Power Company B.S.C.(c) (HPC), through the acquisition of IP Middle East Holding Company (IPMEHC) from International Power Holdings Limited (IPR).

This closing ceremony marks the smooth completion of a total of US$ 90 million term loan facility provided to Malakoff’s subsidiary, Malakoff International Limited (MIL), by Mizuho and EXIM Bank.

Speaking at the signing ceremony, Zainal Abidin Jalil, the Chief Executive Officer of Malakoff said, “Today’s ceremony marks a significant milestone for Malakoff, as the synergies developed from this strategic collaboration with the various parties, here and in Bahrain, will further strengthen our position as a leading player in the MENA region.”

“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 added.

HPC is the owner and operator of a build, own and operate (BOO) power generation and water desalination plant in Bahrain with a total capacity of 929MW (Megawatt) of power and 90 MIGD (Million Imperial Gallons Per Day) of water desalination. The facility supplies Bahrain with approximately 39 per cent and 62 per cent of current power and water supply respectively. Upon the completion of the acquisition, HPC’s shareholding will stand at: MIL (40 per cent), IPR-GDF Suez (30 per cent) and Sumitomo Corporation (30 per cent).

"EXIM Bank of Malaysia participated as the Mandated Lead Arranger for the facility, as part of its mandate to support Malaysian companies in the global market. We will continue to provide support of this nature to all Malaysian companies in its overseas ventures," noted Dato’ Adissadikin Ali the Managing Director / Chief Executive Officer of EXIM Bank Malaysia.

Outlining their role in this acquisition financing, Mizuho’s Hiroyuki Yoshinari, Managing Director/ Chief Executive Officer said, "Mizuho has been the Financial Advisor to Malakoff in the acquisition, facilitating the evaluation of asset value, bid preparation, analysis of risks and assistance in bid negotiation as well as the Mandated Lead Arranger for the acquisition financing. We have been financial advisors to Malaysian-Japanese consortium previously, but this is our first advisory role to a solely Malaysian company and we are pleased to be part of this strategic venture."

Apart from the Middle East, Malakoff is also exploring other growth opportunities especially in the fast growing South-East Asian markets.

Highlighting Malakoff’s long-term vision, Zainal said, “Today’s acquisition marks a further step in Malakoff’s expansion as we power ahead with our plans of becoming Malaysia’s multinational water and power company.”

Malakoff’s plays a prominent role in Malaysia’s energy sector as the country’s largest independent power producer with a net generating capacity of 5,020 MW from its six power stations. The Company recently won the competitive bid to expand its Tanjong Bin coal-fired power plant by another 1,000MW. The new capacity will be made available to the national utility, Tenaga Nasional Berhad.