* 1MDB extends Maybank bridge loan for second time
* Extension means 1MDB will not have to rush IPO of power
* IPO worth up to $2 bln; seen critical to cutting debt load
(Adds details of extension and outlook for IPO)
By Yantoultra Ngui and Saeed Azhar
KUALA LUMPUR/SINGAPORE, May 21 State investor
1Malaysia Development Bhd (1MDB) has won a six-month extension
on a $1.9 billion bridge loan, giving it more time to launch a
planned IPO of its power assets to cut debt, people familiar
with the matter said.
The IPO, which aims to raise as much as $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
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 Bhd, is now due in November, said the people,
who declined to be identified as the matter is private.
Shahriza Embi, senior vice-president of corporate
communications at 1MDB, said in an email that the company would
not comment on the matter.
Maybank did not reply to an email seeking comment.
The fund has been dogged by negative publicity over massive
fees and charges it paid for bond sales through Goldman Sachs
, a near one-year delay in publishing its 2012-13
financial accounts and, most recently, changing auditors for the
second time since 2009, with Deloitte replacing KPMG.
In its IPO, 1MDB is expected to bundle 15 power plants it
bought over a two-year shopping spree in a bid to a capitalise
on growing electricity demand in Malaysia, the Middle East and
South Asia, as well as the greenfield $3.6 billion 2,000
megawatt coal-fired plant that it won the tender for in
It had total borrowings of 36.2 billion ringgit at the end
of March 2013, according to its latest financial accounts filed
with the Companies Commission of Malaysia.
(Reporting by Yantoultra Ngui in Kuala Lumpur and Saeed Azhar
in Singapore; Editing by Denny Thomas and Edwina Gibbs)