RM7.5b used to clear debts, says 1MDB
Published on: Monday, October 12, 2015
Kuala Lumpur: 1MDB confirms Bank Negara directives, says RM7.5 billion used to clear debts.1Malaysia Development Berhad (1MDB) said it had already used the US$1.83 billion (RM7.53 billion) it invested abroad to reduce its debts, in response to Bank Negara Malaysia's order for it to repatriate the fundsConfirming the central bank's statement earlier Saturday on the revocation of three permissions granted, the government-owned investment firm said these were issued by Bank Negara between 2009 and 2011 for 1MDB to make overseas investments.
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"It is pertinent to highlight that those permissions, when granted, had no requirement for funds to be repatriated. Further, the use of those funds have been described in detail in the notes to 1MDB's publicly available financial statements dated March 31, 2009 to March 31, 2014," the firm said in a statement."The overseas investments of US$1.83 billion relates to historic equity and murabaha loan investments in a joint venture with PetroSaudi in 2009-2011, that was eventually converted in September 2012 into fund units valued at US$2.318 billion."As previously explained by 1MDB to BNM, this sum of US$2.318 billion has been redeemed in 2014 and 2015, with proceeds being substantially utilised.
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"The remaining US$940 million of fund units, are guaranteed by Aabar and have been ear-marked for a 'debt for asset swap' with its AA rated parent, IPIC, as part of the 1MDB rationalisation plan."It is, therefore, clear that the original US$1.83 billion sum has either been spent or ear-marked for debt settlement arrangements, that will result in a substantial reduction of 1MDB's debt, per the rationalisation plan."
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1MDB said it had already provided written and verbal explanations of these facts to BNM between June and end-September this year.It added that BNM had the right to revoke its earlier permissions and issue any direction it deemed fit under the Financial Services Act 2013.Stay up-to-date by following Daily Express’s Telegram channel.
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