The Federal Government’s sovereign development fund 1Malaysia Development Berhad (1MDB) is still in the red despite landing a sweet RM2 billion loan from magnate Ananda Krishnan – and it might have to ask Putrajaya for another RM3 billion soon.
Reuters reports that after speculation on 1MDB receiving a multi-billion ringgit injection from the Finance Ministry, the company stated, “1MDB announced the outcome of its strategic review, in which we emphasized that 1MDB will seek refinancing “from the best available sources.”
“We further stated that our 100 percent shareholder, the Ministry of Finance will be involved, as relevant and as required, in the interests of maximising shareholder value.”
1MDB might need that refinancing soon, as its power assets are currently generating insufficient income to pay off its debt – a massive USD11.6 billion (RM42.2 billion) deficit that is threatening to jepardise Malaysia’s sovereign credit rating.
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