According to reports, state-owned investment fund 1Malaysia Development Berhad (1MDB) has called off plans to sell up to Ringgit 8.4 billion ($2.4 billion) of Islamic bonds. The Islamic bond or sukuk had been earmarked to raise funds for the construction of a $3.6 billion greenfield 2,000 MW coal-fired power plant, known as 3B, in the state of Negeri Sembilan. The Malaysian fund, which owns 16 power and desalination plants in six countries, has been dogged by controversy over a nearly $12 billion outstanding debt. 1MDB is also expected to withdraw from the 3B power project. If the company had come out with the planned sukuk issue, it would have been the biggest Islamic bond deal of 2014. 1MDB partnered with Mitsui and Company Limited to win the bid for Project 3B in February last year, beating YTL Power International, Tenaga Nasional Berhad and Malakoff Corporation Berhad. The greenfield power plant was expected to start operations in 2018 and run for 25 years, but it has been hit with delays.
