ICBC and China Eximbank provide $800 million overseas investment loan for acquisition of Edra Global Energy Berhad

In 2015, ICBC and China Eximbank provided a $800 million 1-year, syndicated, bridge, overseas investment loan to Edra Power Holdings Sdn Bhd (EDRA) — a subsidiary of China General Nuclear Power Corporation (CGNPC) — to facilitate its $2.3 billion acquisition of Edra Global Energy Berhad (also known as Edra Company of Malaysia). ICBC served as the mandated lead arranger of the syndicated loan. The loan carried a 1 year maturity, but its interest rate and grace period are unknown. CGNPC provided a corporate guarantee in support of the loan. On November 23, 2015, 1MDB — a Malaysian state investment fund — agreed to sell its energy business (Edra Global Energy Berhad) in a $2.3 billion cash deal to China General Nuclear Power Corporation (CGN) in order to reduce its indebtedness and restore investor confidence. Then, on March 23, 2016, Edra Power Holdings Sdn Bhd (EDRA) became a subsidiary of China General Nuclear Power Corporation (CGNPC) following the successful acquisition of Edra Global Energy Berhad’s operating companies by CGNPC and its subsidiaries for RM 9.83 billion in cash. CGN Group also assumed all the relevant gross debt and cash of these operating companies. Following the acquisition, Edra Power Holdings Sdn Bhd became the new holding company of these operating companies, which include Edra Solar Sdn Bhd, Edra Energy Sdn Bhd, Powertek Energy Sdn Bhd, Jimah Teknik Sdn Bhd, Jimah O&M Sdn Bhd, Mastika Lagenda Sdn Bhd and Tiara Tanah Sdn Bhd.

Additional details

1. The Chinese project title is 中国广核集团收购马来西亚埃德拉公司 项目 or 中广核Edra电站项目 or 埃德拉项目. 2. Prior to its acquisition, Edra Global Energy Berhad (also known as Edra Company of Malaysia) was the power asset arm of 1 Malaysia Development Bhd (1MDB). The sale of IMDB's energy assets (more than RM17 billion, equity and debt assumed) was designed to significantly reduce 1MDB's debts. 3. Edra Power Holdings Sdn Bhd — a wholly owned subsidiary of China General Nuclear Power Corporation, Ltd — is a company that was incorporated in Malaysia on November 5, 2015. It is an international independent power producer, controlling a diversified portfolio of quality power generation assets across a range of technologies. Edra Power Holdings Sdn Bhd, together with its subsidiaries and associates, have a portfolio of 13 gas-fired and coal-fired power and desalination plants in Malaysia, Bangladesh, Egypt, Pakistan and United Arab Emirates with a gross installed capacity under management of 6,619 MW and an effective capacity of 5,594 MW. 4. In 2015, Malaysia's then-Prime Minister Najib Razak was accused of channelling over RM 2.67 billion (approximately $700 million) from 1Malaysia Development Berhad (1MDB) — a government-run investment fund — to his personal bank accounts. The event triggered widespread criticism among Malaysians, with many calling for Najib Razak's resignation –- including Mahathir Mohamad, one of Najib's predecessors as prime minister, who later defeated Najib in the 2018 general election and returned to power. Razak reportedly asked Low Taek Jho (commonly referred to as Jho Low) to negotiate with the Chinese Government to resolve the 1MDB crisis. Jho Low is also accused of being the mastermind of an elaborate effort to defraud 1MDB. In October 2016, Interpol published a red notice at Singapore's request to locate and arrest Low in an investigation related to 1MDB scandal. Then, in November 2020, Al-Jazeera reported that Low was currently living in Macau, in a house owned by a senior member of the Chinese Communist Party.

Number of official sources

15

Number of total sources

27