Nobody knows the Indian side of the story...74% ownership RKM Powergen Pte Ltd's (India) share of the borrowings/losses and how it is coping/refinancing...unless Mudajaya is funding entirely (unlikely because RM5 billion spent to build so far). Borrowings from Indian state govt or private banks? What about their losses and payment schedules/refinancing?? Question s to ask next AGM guys. If only someone can get the latest audited financials of RKM Powergen Pte Ltd ...things will be more transparent. Unfortunately it is a private entity not a public listed company so not easily obtainable. Another pressing question is whether Mudajaya guaranteed it's India counterpart's loans????

Now to think about it...the multi billion ringgit project is too big to fail...it must be completed...but how and by whom? And at what cost?

Just can't mind my own business...

Pursuant to Part C of Chapter 9, Paragraph 9.04 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, we wish to announce that Mudajaya Corporation Berhad ("MCB"), a wholly-owned subsidiary of Mudajaya Group Berhad, has secured a term loan facility of USD50 million (equivalent to approximately RM223.8 million) from United Overseas Bank (Malaysia) Bhd for general corporate purposes including the redemption of Sukuk Programme.

MCB has an authorised and paid-up share capital of RM1,500,000,000/- and RM284,000,000/- respectively. The principal activity of MCB is civil engineering and building construction.



This announcement is dated 21 December 2016.

Local borrowings...foreign borrowings (Hong Kong) plus CMC RM175m arbitration payment (most likely) soon...looks like the company can pay the SUKUK due and also finish the power plant project. Then sell the power plants and pay back ASAP. Unless the Indian authorities throw the spanner in and refuse/delay COD or Mudajaya's engineers screw it up again.

Price rising fast...good luck and goodbye. No business confusing people here when I have no shares. Just wanted to share my thoughts...time to move on.

If it can get through the financial difficulties...

Just browsing...found this in the RKM Powergen Pte Ltd Bloomberg site. Looks like Sep 13th 2016 not sure.

http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=23069502

R.K.M. Powergen Pvt. Ltd. Key Developments
Mudajaya Plans to Sell Its Stake In R.K.M Powergen
Sep 13 16
Mudajaya Group Berhad (KLSE:MUDAJYA) is planning to sell its stake in R.K.M. Powergen Pvt. Ltd. James Wong Tet Foh, the managing director and Chief Executive Officer said "The key is to maximise the value of the power plant, the price will be better when it is fully completed." The group's 26% stake was valued at MYR 1.1 billion by independent valuers at the end of last year. Wong estimates that when the plant is fully operational, it may fetch a book value of more than MYR 1.5 billion.

Good luck guys

Anyway...these contracts have thin profit margins.

The company will not be able to refinance borrowings due forever...and billion ringgit contract wins are late and will contribute to cash flow at a latter stage...

Hope I am wrong

New borrowings from Hongkees just buying time and increasing the cost of completion of plants. Critical period for company. Best case scenario in my opinion...sell India Power plants at a reasonable loss (if possible). Last quarter losses huge and can only go higher...when the other 2 plants attain COD...interest cost will go higher..With all 4 plants blasting...only RM70m per annum...current losses way way above income/potential income...my 5cts worth.

Result of CMC arbitration out soon. RM176m owed by CMC. Will help to pay RM240m MTN borrowings due in Jan'17.

Mudajaya must have approached Fairfax ist and foremost before going to SHK

Really tough decision to hold,buy,sell...

Latest moves by directors/major shareholders bringing more questions than answers..e.g. token purchase of shares by major shareholders...fresh large borrowings etc

Just sharing my thoughts

My take on gerry 188's sharing i.e. Latest corporate announcement - appointment of Sun Hung Kai (SHK) Investment Services as a dealer for their Euro Medium Term notes (USD 200 million).

1. Ability to get someone to guarantee the Term Notes despite continued losses...they were surely provided with all info on the prospects of the company..especially the Indian plants. But then again.... Fairfax also invested and we all were so happy.

2. The announcement was under "related party transaction" ...meaning SHK is related in terms of either shareholder (proxy), director, indirect shareholdings significant influence overs board etc.

3. However, cost of this USD borrowing guarantee is very high 7% not including comm at 1.25%/charges etc. Anyone in corporate banking can tell us the current USD Medium Term notes average costs...because the pricing always matches the risk...the higher the risk...the higher the interest rate.

4. Funds sufficient to repurchase all current borrowings plus complete plants 3 & 4?

5. Why expensive borrowings from overseas lenders? M'sian/Indian lenders recalling/recalled facilities? Only related parties concerned with their investment...willing to guarantee?

My 5cts worth...

Is Mulpha an idiot?

They are definetelly not idiots...that I can assure you.

ICRA (for RKM Powergen India) and RAM ratings (local MTN borrowings) not out in a long time...maybe the borrowings were refinanced by banks and therefore do not require external rating agencies...just a wild guess.

Turnover of shares of this counter is low and punishing to large sale of shares.

No big shareholder can now sell large number of shares to retail investors without pushing down the price further in my opinion. All the big fish are stuck. Just have to wait it out I guess or sell to the big shareholders like what happened with Mulpha

6mil shares cost 5.4m (.90cts)... is chicken feed compared to hundreds of million losses these 2 guys lost so far. If they don't support who will?

Mulpha can now state as long term investments in Mudajaya at cost instead of market value? Anyone knows? Whatever it is...major shareholder selling off significant number of shares is a red flag in my opinion. Within 3 months 2 large selloffs.

I believe u are rite chinaman 20 - 50% ownership is an associate in balance sheet. Now onwards recorded as investments.... But why sell the goose?

Does Mulpha really need to sell? Are they so desperate for funds? Anyone knows?

If Fairfax sells...they will be shooting themselves in the foot

Wonder what Fairfax will do...they hold about 14%?

Dataran Sentral's shareholding value has dropped from hundred's of million years back to about 88 million even after the purchase...so 6.5 million is a "show of confidence" so to speak?

PETALING JAYA: Mudajaya Group Bhd’s former managing directors, Ng Ying Loong (pic) and Anto Joseph, have raised their stake in the power plant builder.

They now control the biggest block of shares in the company.

Dataran Sentral (M) Sdn Bhd, the management company owned by Ng and Joseph, acquired 6.5 million shares in Mudajaya from Mulpha International Bhd on Dec 5 at 90 sen each, filings with Bursa Malaysia yesterday showed.

The transaction increased Dataran Sentral stake in Mudajaya to 110.18 million shares or 20.5%.

At the same time, Mulpha’s stake in Mudajaya was further reduced to 100.3 million shares, or 18.6%. The disposal came less than three months after Mulpha sold 13.46 million shares in Mudajaya at RM1.01 each.

The sale and purchase leaves more questions than answers

Why sell the goose if its going to lay the golden egg?

Meaning they have information on everything the board discusses.

Mulpha I believe...and they should have board representation as they are a major shareholder.

Guess who sold

My advice is get the latest ICRA report on RKM Powergen's borrowing's rating. They are professionals and i of the best in the world. They will be provided with all the Joint venture's facts so as to give a clear picture of the financial situation and repayment capability....same like RAM Malaysia for Malaysian borrowers. If it's upgraded from "D" the all is fine.

EHL1964...Bro..I am worried when you say India coal plant still have 18 - 19% profit. Bro the guy mentioned a company NTPC and said its return on investment was 18 to 19 % ...not a general statement of current profit from power plants. Each companies investment and return is different

Johnny Cash my no is 012-5382040

Tired...information overload...

Ok guys thats all for you guys to analyse for now...

Oct 2015 document above 1159.63 crore...1 crore = USD160,000.00 please convert

RKM Powergen Private Limited
Instrument Amount Rating Action in Rs crores September 2015 Term Loan 1159.63 [ICRA]D (reaffirmed) Non-fund based facilities 255.00 [ICRA]D (reaffirmed)
ICRA has reaffirmed the long term rating at [ICRA]D (pronounced ICRA D)* for the Rs. 1159.63 crore† fund based and Rs. 255 crore non-fund based bank facilities of RKM Powergen Private Limited (RKMPL).
The rating reaffirmation factors in the continued delays in meeting the interest payment obligations by RKM Powergen Private Limited owing to delay in commencement of commercial operations of the 1440 MW (4 x 360 MW) domestic coal based thermal power project (TPP) being developed by the company in the state of Chhattisgarh. ICRA notes that the delay in execution of the TPP was initially due to land compensation related issues and later due to delay in securing funding for cost overruns, securing working capital limits and also due to delay in receiving Consent to Operate from State Government. ICRA notes that the Consent to Operate for unit-1 has now been obtained, while the same is pending for unit-2. The cost overruns are primarily caused by adverse rupee dollar exchange rate fluctuations, increase in IDC (interest during construction) component due to time delays and increase in cost of civil works. The escalation in project cost is now estimated to be 56% of the appraised project costs. ICRA also takes note of the risks arising from the de-allocation of the captive coal block as per the Supreme Court order in September, 2014 which has heightened fuel availability risk from domestic sources for 35% of the project capacity; fuel supply risks persist for the remaining capacity owing to delay in achieving commercial operations from the timelines agreed in the fuel supply agreements (FSA) with South Eastern Coalfields Limited (SECL) and also as long term power purchase agreements (PPAs) are not in place for the entire capacity as the same is mandatory for off-taking coal from SECL. ICRA also takes note of the delays in development of railway siding due to pending land acquisition which would increase the delivered cost of coal as the fuel shall have to be transported by road from the nearest unloading point at a distance of about 22 KM.
ICRA however takes note of the significant construction progress achieved by the project with two out of the four units ready for commissioning and the presence of fuel supply agreement for supply of domestic coal under long term linkage for about 65% of the capacity; however, the shortfall in domestic coal production is expected to restrict the supply of coal from domestic sources‡ to 65%-75% of the contracted quantity with the remaining fuel being sourced from e-auction coal or imports. ICRA also takes note presence of a cost-plus PPA with Chhattisgarh State Electricity Board (now Chhattisgarh State Power Trading Corporation Limited) for 35% of the project capacity, wherein supply for 5% of the capacity would be at variable charges, while the tariff for the remaining 30% of the capacity would be determined by the state electricity regulatory commission as per the approved tariff regulations. Further, the project has received a letter of intent from Uttar Pradesh Power Corporation Limited for signing long term PPA for 350 MW.
Company Profile
RKM Powergen Private Limited is an special purpose vehicle promoted by the Chennai based R.K. Powergen Group (74% holding) and the Malaysia based Mudajaya Group (26% holding) for the development of a 1440 MW domestic coal based thermal power project in Janjgir Champa district of Chhattisgarh in 2 phases (Phase 1 of 360 MW (1 x 360) and Phase 2 of 1080 MW (3 x 360)). The project cost was initially revised from Rs.
* For complete rating scale and definitions, please refer

http://www.icra.in/Files/Reports/Rationale/RKM%20Powergen%20-R-07102015.pdf

got it!

sorry OCT'15!!!

08 Oct16 rating above, TL stands for term loan and non-FB refers to non-fund banking facilities I believe. Just sharing ok

Phoenix Lamps Ltd LT - Fund Based *^ A 1000 Upgraded
from A-
*including Rs. 15.00 crore proposed term loan
^ including Rs. 80.20 crore unallocated limits
Punjab Hammers Pvt Ltd CC BB 50 Reaffirmed
Rkm Powergen Pvt Ltd TL D 11596.3 Reaffirmed
Rkm Powergen Pvt Ltd Non-FB Fac D 2550 Reaffirmed
Rmz Ecoworld Infrastructure TL A 18043.1 Reaffirmed

Can't get in to ICRA site to see rating rationale and amount of borrowings...only could get the above...dono amount in Rupees or Crores. Can someone help find out?

Term Loan for 11,596.3

Rkm Powergen Pvt Ltd TL D 11596.3 Reaffirmed

ICRA is an Indian rating agency like RAM in Malaysia I believe. Good source of how the Indian joint venture RKM Powergen's borrowings are rated. I think I have informed you guys before.

Anybody can get the latest ICRA rating on RKM Powergen Ltd India ...the old rating in 2015 was no good:-

Ratings revised for the bank loan facilities of RK Powergen Private Limited to [ICRA]BB- and [ICRA]A4; outlook revised to Negative
July, 30 2015 | Rationale

Rating reaffirmed at [ICRA]D for the bank loan facilities of RKM Powergen Private Limited
October, 07 2015 | Rationale

Please print the rationale behind the "D" rating please

Also I believe they are having financial constraints in funding the completion of units 3 & 4 let alone get approval for COD. Bottom line is..in my 5ct opinion...sell the power assets fast...or sink.