1MDB: We didn't hide PetroSaudi debt
Published: Feb 21, 2015 10:44 AM | Updated: Feb 22, 2015 4:14 AM
State investment firm 1Malaysia Development Berhad (1MDB) said it did not hide the fact that it had entered into a joint venture with a little-known Saudi Arabian firm in 2009 which already had a debt of US$700 million (RM2.55 billion).
State investment firm 1Malaysia Development Berhad (1MDB) said it did not hide the fact that it had entered into a joint venture with a little-known Saudi Arabian firm in 2009 which already had a debt of US$700 million (RM2.55 billion).
It said it disclosed all details of the transaction with PetroSaudi in its publicly-available audited accounts for the year ended March 31, 2013, as well as the Frequently Asked Questions section on its website.
"1MDB has noted with surprise recent online press coverage and statements regarding a transaction we entered into with a Saudi Arabian company in 2009.
"We have previously provided details on this transaction in our publicly available audited accounts, and in an FAQ that is published on the company’s website.
However, the FAQ published by 1MDB only notes that it entered into a joint venture with PetroSaudi, but its investment into the venture was converted into a loan when the deal went bust.
It does not mention the fact that 1MDB had invested US$1 billion (RM3.65 billion) into the joint venture which was already carrying a US$700 million (RM2.55 billion) in debt, exposed by Sarawak Report on Thursday.
The reason for the initial investment into a debt-laden entity was also not explained in today's statement.
'Certain projects'
Instead, it reiterated that the joint venture in 2009 was to undertake in “investments in certain projects”.
It again noted that the loan it extended to PetroSaudi when the joint venture folded has been paid in full, with 1MDB reaping a profit of US$488 million (RM1.78 billion).
A total US$2.318 billion (RM7.8 billion) was then invested into an unnamed fund in tax haven the Cayman Islands, it said.
All the funds have been redeeemed but US$1.103 billion (RM4.02 billion) are held in US dollars to match US dollar liabilities and service interest payments on its US$6.5 billion (RM23.71 billion) long-term bonds.
It said it disclosed all details of the transaction with PetroSaudi in its publicly-available audited accounts for the year ended March 31, 2013, as well as the Frequently Asked Questions section on its website.
"1MDB has noted with surprise recent online press coverage and statements regarding a transaction we entered into with a Saudi Arabian company in 2009.
"We have previously provided details on this transaction in our publicly available audited accounts, and in an FAQ that is published on the company’s website.
However, the FAQ published by 1MDB only notes that it entered into a joint venture with PetroSaudi, but its investment into the venture was converted into a loan when the deal went bust.It does not mention the fact that 1MDB had invested US$1 billion (RM3.65 billion) into the joint venture which was already carrying a US$700 million (RM2.55 billion) in debt, exposed by Sarawak Report on Thursday.
The reason for the initial investment into a debt-laden entity was also not explained in today's statement.
'Certain projects'
Instead, it reiterated that the joint venture in 2009 was to undertake in “investments in certain projects”.
It again noted that the loan it extended to PetroSaudi when the joint venture folded has been paid in full, with 1MDB reaping a profit of US$488 million (RM1.78 billion).
A total US$2.318 billion (RM7.8 billion) was then invested into an unnamed fund in tax haven the Cayman Islands, it said.
All the funds have been redeeemed but US$1.103 billion (RM4.02 billion) are held in US dollars to match US dollar liabilities and service interest payments on its US$6.5 billion (RM23.71 billion) long-term bonds.
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