1MDB to engage with US dollar bondholders

1MDB to engage with US dollar bondholders

KUALA LUMPUR - 1Malaysia Development Bhd (1MDB) has hired Alvarez & Marsal Asia Ltd as it starts an engagement process with holders of its US dollar denominated bond following the default on the US$1.75bil 1MDB Energy (Langat) Ltd papers.

It said yesterday that while Alvarez & Marsal Asia would be its financial advisor, it has also hired D.F. King Ltd, an Orient Capital company, as the identification and information agent to directly carry out the bondholder identification and registration process.

Apart from the Langat notes whose coupon rate is 5.75 per cent, D.F. King would identify and register bondholders of the Tanjong power plant notes amounting to US$1.75bil and those holding the US$3bil papers issued to finance the development of the Tun Razak Exchange (TRX) project.

Both the Tanjong and Langat notes will expire in 2022 while the TRX notes is due to mature a year later.

"1MDB will now actively engage with all holders in order to outline the next steps of the process; explain the background of the dispute (with IPIC).

"1MDB also wants to clarify why it has taken the position to not make the interest payment on the Langat Notes and reiterate that 1MDB has a rationalisation plan in place that enables the company to meet its existing debt obligations," it said.

1MDB has also requested D.F. King to launch a microsite at http://sites.dfkingltd.com/1MDB/home/, which contains all relevant information and will include regular updates for bondholders.

Once registered, registrants will be able to submit questions online through the website.

It added that a call for all holders of US dollar denominated bonds would take place on May 23.

While 1MDB undertakes the exercise, it also said it was committed to working openly with International Petroleum Investment Company (IPIC) to resolve the dispute.

1MDB welcomes dialogue with all holders and therefore requests them to disclose their identities and holdings to D.F. King via one of the two options, below:

a) provide the information to D.F. King via their custodian bank to Euroclear or Clearstream, Luxembourg (as appropriate) by means of the disclosure event in place by no later than deadline imposed by Euroclear or Clearstream; or

b) provide the information directly to D.F. King via the website at http://sites.dfkingltd.com/1MDB/home/

1MDB also gave an assurance that all information received will be treated in the strictest confidence and will be used solely for the purposes of the 1MDB and its advisers.

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