KUALA LUMPUR: The Employees Provident Fund (EPF) has minimal exposure to 1Malaysia Development Bhd's (1MDB) overall debts.
EPF CEO Datuk Shahril Ridza Ridzuan said it had RM200 million of the first RM5 billion issuance when 1MDB was still known as the Terengganu Investment Authority.
He added that even that small investment was fully guaranteed by the government.
"The issue with 1MDB is a perennial question and we have always reiterated that EPF's exposure to 1MDB is very limited.
"That exposure is fully government guaranteed and we have never had a problem with it and never had an issue in terms of being serviced," he said when asked if EPF was affected by 1MDB defaulting in its interest payment on a RM5 billion bond.
Shahril told the media the EPF was following with great interest the current developments pertaining to 1MDB's other debt exposures.
He also explained that every single bond issuance has a trustee and it is the trustee's responsibility to "banish the issue".
"We will wait for the trustees to see if they deem there has been a cross default, and if they need to bring the matter to the bond holders," he said.