1MDB to cut debts by RM17 bln with CGN agreement

1Malaysia Development Bhd (1MDB) is expected to reduce its debts by RM17 billion when the takeover of debts of Edra Global Energy Bhd's (Edra) operating assets by China General Nuclear Power Corporation (CGN) is completed.

The Finance Ministry said this was achieved following the share sale and purchase agreement signed with CGN for the sale of 1MDB's 100 per cent ownership in Edra's energy assets on Nov 23 this year.

"Based on Edra's financial statement for the year ended Mac 31, 2015, 1MDB will receive for its equity, cash of RM9.83 billion, besides the takeover of debts of Edra's operating assets by CGN Group of RM7.43 billion.

"With the cash and transfer of debts, 1MDB will achieve a debt reduction of up to RM17 billion. The transaction is expected to complete in February 2016," according to the Finance Ministry in a written reply to a question from Datuk Mahfuz Omar (PAS-Pokok Sena) which was distributed at the Dewan Rakyat here, today.

Mahfuz asked the government to state the list of consortia and bidders that were shortlisted and the tender procedure as well as criteria for Edra and when it was finalised.

Apart from that, he also wanted to know the list of bidders as well as the tender criteria for land and projects at Bandar Malaysia.

For this question, the ministry said 1MDB was still in negotiations with the shortlisted parties and the tender results would be announced when the discussions were completed.