1MDB says it still has RM32.3b outstanding debt

KUALA LUMPUR (March 26): 1Malaysia Development Bhd (1MDB) still has an RM32.3 billion outstanding debt despite its continuous recovery efforts to enable the fund to pay the bondholders and sukukholders upon maturity of debt instruments.

In a statement today, 1MDB said two USD-denominated bonds with a value of US$3.5 billion (RM14.7 billion) with coupon rates of 5.75% and 5.99% per annum will mature in 2022, while another with a value of US$3 billion (RM12.6 billion) with a coupon rate of 4.4% per annum will mature in 2023.

“1MDB’s last remaining debt is a RM5-billion sukuk with a 5.75% per annum profit rate, with a maturity date of 2039.

“Total of bonds/sukuk principal and coupon/profit to be paid till maturity is RM40.51 billion,” it added.

Stressing that the recovery of assets remains a key priority for the fund, 1MDB said all proceeds from the asset recovery efforts, including any future settlements, have been or will be deposited into the  Asset Recovery Trust Account nder the custody of the Accountant General’s Department.

Noting that Malaysia has received a cash settlement of US$2.5 billion from Goldman Sachs, IMDB said the amount has been deposited into the Trust Account.

“Recently, 1MDB also successfully reached a settlement with AMMB Holdings Berhad for RM2.83 billion and Deloitte for RM324 million,” it added.

1MDB said the recovery process also involves the appointment of legal counsels to assist in 1MDB’s civil action.

“These legal counsels are remunerated based on a pre-agreed time cost, and not based on commission or a percentage of the value of settlements, or assets recovered,” 1MDB said.

The statement did not mention how much money has been paid to the counsels.

1MDB noted that a secial taskforce has been set up by the MOF to assist in the recovery process.

“A special taskforce has been established by the MOF which includes representatives from 1MDB, the Attorney General’s Chambers, the Securities Commission Malaysia, Bank Negara Malaysia, the Royal Malaysian Police Force, the National Anti-Financial Crime Centre, the Malaysian Anti-Corruption Commission and the National Centre for Governance, Integrity and Anti-Corruption,” it said.

Get the latest news @ www.EdgeProp.my

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories