1MDB: Final redemption of funds from Cayman Islands

Arul Kanda

(The Star) – 1MDB president and group executive director Arul Kanda said in a statement on Tuesday that 1MDB has redeemed in full the RM2.318bil invested by the company in a Cayman Islands registered fund.

“Following a commitment made by the Chairman of the Board of Directors in a statement dated 23 December 2014, 1MDB can confirm that it has now redeemed in full the US$2.318bil invested by the company in a Cayman Islands registered fund.

“These funds originated from the repayment of a loan provided to PetroSaudi in 2011, in the form of Murahaba notes, following the termination of an earlier agreement to enter into a JV with the company.

“The notes, which were paid back in full – with interest, were subsequently invested in a fund under the regulatory supervision of the Cayman Monetary Authority.

“1MDB had previously redeemed US$1.215bil, representing 60% of the funds invested, and has now redeemed an additional US$1.103bil, representing the remaining balance of the total US$2.318bil that was originally invested.

“1MDB hopes that the redemption of these funds, in full, draws a line under this matter,” the statement said.