Finance Ministry confirms funds from BNM, Khazanah used to service 1MDB debts

PUTRAJAYA: The Finance Ministry today confirmed that Bank Negara Malaysia (BNM) and Khazanah Nasional Berhad had made payments to the ministry in two separate deals to help service 1Malaysia Development Berhad (1MDB) debt obligations.
Finance Minister Lim Guan Eng said the deals amounted to RM3.26 billion, of which RM2.06 billion was raised through the sale of a piece of land to the central bank and the remaining RM1.2 billion through redemption of a shareholder capital by Khazanah.
He confirmed earlier reports that payments were made by the two entities to the ministry, during the previous Barisan Nasional (BN) administration, which were then utilised to pay for some of the liabilities of the state investment arm.
According to Lim, the RM3.26 billion figure was part of the RM5.05 billion settlement agreement reached in April 2017 that was paid to Abu Dhabi fund International Petroleum Investment Company (IPIC) by 1MDB after the latter defaulted on its bonds.
"The sources for the payment made to IPIC and on behalf of 1MDB included the redemption of Redeemable Cumulative Convertible Preference Shares (RCCPS) by Khazanah amounting to RM1.199 billion.
"... and the sale of Lot 41, Seksyen 51 Bandaraya Kuala Lumpur to BNM amounting to RM2.066 billion," he told a press conference here today.
On the BNM deal, Lim said the ministry, through its indirectly wholly owned company Hartanah Mampan Sdn Bhd (HMSB), entered into a Sale and Purchase Agreement (SPA) on Dec 14, 2017 with BNM to sell a piece of land strategically located adjacent to Sasana Kijang.

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