1Malaysia Development Berhad (1MDB) is a strategic development company, wholly owned by the Government of Malaysia. 1MDB was established to drive strategic initiatives for long-term economic development for the country by forging global partnerships and promoting foreign direct investment. 1MDB is currently involved several high-profile projects such as the Tun Razak Exchange, Tun Razak Exchange’s sister project Bandar Malaysia and the acquisition of three Independent Power Producers. – Wiki
“Be bold and daring…and break new ground to do things differently” … so their website say.
…I don’t get it. A too big to fall (TBTF) corporation owned by corporate Malaysia is unable or simply refuse to pay its debt? Now its being ‘bailed-out‘ by a an individual, a multi-billionaire Ananda Krishnan… and that makes the owner (government), is now indebted to a private citizen? What would be the “terms and conditions”? Hello Malaysians…do you get it? Ask 1MDB to reveal it!
What about this report ? :
The order came as a surprise move by management, according to sources and it happened just before Christmas. Staff were contacted directly by phone or in person and told to take their computers immediately to the IT section in order to be wiped. Read more
1MDB repays RM2 billion loan after Ananda Krishnan bailout, say sources
Malaysia’s debt-heavy strategic investor 1Malaysia Development Bhd (1MDB) settled a RM2 billion loan yesterday with money from billionaire T. Ananda Krishnan, six days before bankers triggered a default, say sources.
The Malaysian Insider understands from bankers familiar with the matter that the banks involved received the money yesterday evening, hours after Ananda was said to have agreed to the bailout.
The payment is a last-minute reprieve for 1MDB – a cross between a sovereign fund and a private investment firm wholly owned by the Ministry of Finance. Its debt woes were seen as pressuring the ringgit and Malaysia’s sovereign credit rating.
“The money has come in. It was an Ananda bailout,” said a source familiar with the matter.
Other sources confirmed the repayment of the RM2 billion for tranche 2 of the RM5.5 billion bridging loan to the relevant banks.
The 1MDB subsidiary, Powertek Investment Holdings Sdn Bhd, took the loan last May to refinance a RM6.17 billion bridging loan taken in 2012 to part finance the purchase of power assets.
1MDB restructured the RM5.5 billion bridging loan into two tranches: a RM3.5 billion loan due by August 2024 and a RM2 billion loan due last November, according to data from LPC, a Thomson Reuters unit specialising in loans.
The RM2 billion loan was guaranteed by Ananda’s company Usaha Tegas, said people with knowledge of the talks between Ananda and 1MDB.
Malaysia’s Maybank has 58.99% of the RM2 billion loan while RHB has 32.41%. The other lenders are Alliance Investment Bank Bhd (4.06%), Malaysia Building Society Bhd (3.24%) and Hwang DBS Investment Bhd (1.29%).
The development fund, which owns a large portfolio of power plants, has missed payments on the bridge loan that was due end-December and its lenders were keen to see it paid before they had to write it down in first-quarter earnings, bankers said.
The Malaysian Insider had reported that the final deadline for the loan repayment was February 18.
Ananda, who sold his collection of power plants to 1MDB, has been in talks with 1MDB to become a cornerstone investor in the long-delayed US$3 billion listing of its power assets.
1MDB, whose advisory board is chaired by Prime Minister and Finance Minister Datuk Seri Najib Razak, has some RM42 billion in total debt. It has been heavily criticised for taking on the debt and the difficulty in repaying its loans.
Among its harshest critics are former prime minister Tun Dr Mahathir Mohamad and former finance minister Tun Daim Zainuddin, apart from opposition lawmakers who say its debts are a risk to the country’s financial system.
The opposition had queried 1MDB’s financial health after 1MDB president and group executive director Arul Kanda Kandasamy told Singapore’s Business Times over the weekend that the remaining US$1.103 billion (RM3.91 billion) Cayman Islands funds will not be repatriated back to Malaysia. – February 13, 2015.
“Where is the money? They haven’t told us where it is. And if they do have it, why didn’t they use it to pay off their debts? They wouldn’t need to borrow from Ananda to do it.”
We say kudos to Dr Mahathir and Daim for being willing to speak out about 1MDB as their voice will carry the necessary weight for action to be taken to prevent 1MDB from becoming one major disaster for Malaysia. – The Malaysian Insider
KUALA LUMPUR, Feb 12, 2015:
Former prime minister, Tun Dr Mahathir Mohamad today said most Malays did not know how to manage money and their culture was to spend. – Rakyat Post