KUALA LUMPUR: The US$1 billion (RM3.66 billion) payment that will be made to 1 Malaysia Development Board (1MBD) by two Abu Dhabi-based firms is not a loan, debt or bailout, the Malaysian fund’s chief said.
1MDB President and Group Executive Director Arul Kanda Kandasamy claimed that the payment is merely part of a business transaction between his company and International Petroleum Investment Company (IPIC) and its Aabar Investments unit.
“Further to the Ministry of Finance’s statement on 29 May, we have noted with concern claims from certain quarters suggesting that the USD1 billion payment from the International Petroleum Investment Company of Abu Dhabi is a loan, or involves 1MDB assuming further debt,” Arul Kanda said in a short statement issued late last night.
“That is absolutely not the case. This is a business transaction; not a loan, not any kind of debt and not a bailout.
“It is an initial payment as part of a broader agreement to comprehensively address the various financial asset and liability transactions between IPIC, Aabar and 1MDB, further details of which will be announced in due course,” Arul Kanda added.