National Power drops Malaysian power plant deal

National Power of the UK has scrapped plans to invest in a Malaysian power plant project, saying the refinancing risks are too great.

National Power of the UK has dropped plans to buy a 20% stake in Tenaga Nasional's 2,420 megawatt (MW) Kapar Power Station, owing to excessive refinancing risks These stemmed from the fact Tenaga is providing three-year finance for the deal, which involves a 25-year lease on the power plant

"It was the refinancing risk in year three that was the issue," says Mike Baker, National Power's project development manager in Malaysia

Under the terms of the deal, Tenaga planned to sell the power plant for M$6 27 billion ($1 65 billion) to a special purpose vehicle, called Kapar Energy Ventures (KEV), split 60:20:20 between Tenaga, Malakoff and National Power M$2 27...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222