1MDB still has RM32.3 billion outstanding debt

1MDB still has RM32.3 billion in outstanding debt with four more bonds/sukuk maturing between 2022 and 2039, bringing the total coupon/profit to be paid till maturity to RM40.51 billion.

The two US dollar-denominated bonds are valued at US$3.5 billion (RM14.7 billion) with coupon rates of 5.75% and 5.99% per annum which will mature in 2022.

Another with a value of US$3 billion (RM12.6 billion) with a coupon rate of 4.4% per annum matures in 2023 and the last remaining debt, a RM5 billion sukuk with a 5.75% per annum profit rate, matures in 2039, 1MDB said in a statement today.

“Total of bonds/sukuk principal and coupon/profit to be paid till maturity is RM40.51 billion. 1MDB will continue its recovery efforts to enable it to pay the bondholders and sukukholders upon maturity of these debt instruments.”

As previously announced by the finance ministry, Malaysia has received a cash settlement of US$2.5 billion from Goldman Sachs which was deposited into the Asset Recovery Trust Account (trust account) under the custody of the Accountant General’s Department of Malaysia.

1MDB also recently succeeded in reaching a settlement with AMMB Holdings Bhd for RM2.83 billion and Deloitte for RM324 million. All proceeds from 1MDB’s asset recovery efforts including any future settlements have been or will be deposited into the trust account.

The recovery of 1MDB assets remains a key priority for the 1MDB board, it siad.

As part of this process, a special taskforce has been established by the finance ministry including representatives from 1MDB, the Attorney-General’s Chambers, the Securities Commission Malaysia, Bank Negara Malaysia, the police, the National Anti-Financial Crime Centre, the Malaysian Anti-Corruption Commission and the National Centre for Governance, Integrity and Anti-Corruption.

The recovery process also involves the appointment of legal counsel to assist in 1MDB’s civil action and asset recovery efforts. These legal counsel 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.