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1MDB now debt-free: Finance Ministry

KUALA LUMPUR: The 1Malaysia Development Bhd (1MDB) fund is now debt-free, as it has repaid in full all its bank loans amounting to almost RM4 billion, the Dewan Rakyat was told today.

The Finance Ministry said the debts, including a standby credit facility from the federal government, were paid in 2015 and 2016.

"As of now, 1MDB does not owe anything to banks, nor has short-term debts," the ministry said in a written reply to Er Teck Hwa (DAP-Bakri).

The ministry said 1MDB made full settlement, amounting to RM229.5 million, for a revolving credit facility to Affin Bank, on Nov 23, 2015.

On March 31, 2015, 1MDB paid the full amount of RM950 million to the federal government for a standby credit facility.

On April 8, last year, RM2 billion was paid to Marstan Investments N.V. for a term loan facility.

On April 15, last year, 1MDB paid in full a term-financing facility amounting to US$150 million to EXIM Bank.

The ministry also said 1MDB had raised cash amounting to RM10.97 billion through sales of assets in Edra Global Energy Bhd, part of equities in Bandar Malaysia Sdn Bhd, and land for the Tun Razak Exchange project in 2015 and last year.

"As the rationalisation plan of 1MDB is ongoing, no new assets were acquired in 2015 and last year," the ministry said.

In line with the plan, the ministry said the number of 1MDB employees is 17 as of Dec 31, last year, down from 35 staff on Dec 31, the previous year.

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