HSBC Malaysia to finance coal power plant for $2.1B

HSBC Bank Malaysia will finance a 1,000MW coal-fired power plant in Tanjung Bin for US$2.114 billion.

The landmark independent power producer financing agreement was signed with Tanjung Bin Energy.

The massive project was secured via Malakoff Corp Bhd's wholly-owned subsidiary, Tanjung Bin Issuer.

"The deal, the first limited recourse financing Sukuk in 2012, is notable in setting a number of benchmarks in the Malaysian IPP financing market and is expected to set the standard for future transactions in the local infrastructure sector," it said in a statement.

This is the first time the energy commission has used a competitive bidding process, which is likely to become a new paradigm for capacity procurements in the country, HSBC said.

HSBC Bank Malaysia Chief Executive Officer Mukhtar Hussain said the bank proud being able to support Malakoff in this project through unique suite of services and comprehensive solutions.