Friday March 22, 2013
1MDB sells bonds, may have issued RM9.36bil notes
KUALA LUMPUR: 1Malaysia Development Bhd, the state investment company also known as 1MDB, sold US$3bil (RM9.36bil) of US dollar-denominated bonds on March 19, said a person with knowledge of the transaction.
The securities were long-dated, said the person who asked not to be named as the information is private.
1MDB chief financial officer Azmi Tahir declined to comment on the matter when telephoned yesterday.
The Kuala Lumpur-based company has RM10.8bil of notes outstanding, according to data compiled by Bloomberg.
This is the second US dollar-denominated offer by the sovereign-wealth fund. It sold US$1.75bil (RM5.46bil) of 10-year debt to yield 5.99% in May 2012. The securities were rated Aa3 by Moody's Investors Service, the fourth-highest investment grade.
1MDB had signed agreements with Aabar Investments PJSC, a company controlled by Abu Dhabi's state-owned International Petroleum Investment Co, to co-invest RM18bil in projects in Malaysia, 1MDB said in a March 12 e-mailed statement.
1MDB is developing a US$8bil (RM24.96bil) financial district in Kuala Lumpur called the Tun Razak Exchange development.