1MDB’s RM2b loan paid in full

PETALING JAYA: 1Malaysia Development Bhd (1MDB) said it has settled a widely speculated RM2 billion loan taken by its subsidiary from local banks, but stopped short of explaining how it had done so.
According to a report in a Malay daily, 1MDB president and executive director Arul Kanda denied tycoon Ananda Krishnan's involvement, calling reports on him stepping forward to make the payment on behalf of 1MDB as mere speculation.
In a brief statement released last Friday, Arul said the loan settlement was made ahead of the due date.
"I can now confirm that 1MDB has settled, in full, a RM2 billion loan owed by an operating subsidiary of ours to Malaysian banks.
"The loan was settled in advance of the due date, per the terms of the loan facility agreement," he stressed.
Arul also said that with the settlement of the loan, 1MDB's commitment to continue meeting all debt obligations is reaffirmed.
The issue of 1MDB's RM2 billion loan has been ongoing since December 2014 when it was reported then that even though due, 1MDB had obtained a one-month extension till January.
The 2 billion forms part of a RM5.5 billion bridging loan taken by 1MDB subsidiary, Powertek Investment Holdings Sdn Bhd.
1MDB did not give a breakdown of the institutions which had lent it the RM2 billion. A report in an online publication however put it that Maybank has 58.99% of the 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%).