Malaysia's 1MDB says to rely on finance ministry for debt refinancing if needed

Malaysia's 1MDB says to rely on finance ministry for debt refinancing if needed

KUALA LUMPUR - Malaysian state fund 1MDB said on Monday that the refinancing of its debt will involve the finance ministry "as relevant and as required" after media reported that the government may inject up to 3 billion ringgit (S$1.1 billion) into the fund.

The Edge Financial Daily said that the finance ministry - which owns 1MDB - may have to inject cash as the fund's income from its power assets is insufficient to service its debt .

"1MDB announced the outcome of its strategic review, in which we emphasised that 1MDB will seek refinancing "from the best available sources"," said 1MDB.

"We further stated that our 100 per cent shareholder, the Ministry of Finance will be involved, as relevant and as required, in the interests of maximising shareholder value."

1MDB last week said it would explore asset sales and the sale of development rights in prime property projects as it seeks to cut its debt - a US$11.6 billion (S$16 billion) burden that has weighed on the ringgit and the country's sovereign credit rating.

Earlier this month, 1MDB settled a 2 billion ringgit loan it owed to banks but sources have said it needed a loan from Malaysia's second-richest man Ananda Krishnan to do so.

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