KUALA LUMPUR: 1MDB needs an estimated RM42 billion to settle the principal and interest on its loans maturing between November 2015 and May 2039.
This was based on assumptions that the company’s rationalisation plan was implemented and no new loans were taken after October 2015, according to the declassified Auditor-General’s Report on the state fund.
The report’s executive summary said 1MDB’s outstanding loans and financing totalled RM55 billion as at Oct 31, 2015, compared with assets of RM58.6 billion.
For the loans and financing, a sum of RM20.31 billion was guaranteed by the federal government.
The report said 1MDB would need sufficient funds to service its high payment commitments, amounting to RM4.88 billion in 2016, RM14.74 billion in 2023, and RM5.14 billion in 2039.
1MDB would also require at least RM1.52 billion annually from November 2015 to May 2024 to repay its loans.
The group’s borrowing cost from 2016 to 2023 would amount to RM9.08 billion.
The report said the 30-year Islamic Medium-Term Notes (IMTN) issued in 2009, maturing in 2039, had a yearly coupon repayment rate of RM287.50 million.
Therefore, 1MDB’s commitment for the IMTN from November 2015 until May 2039 would total RM11.9 billion, comprising RM5 billion in principal value and financing cost of RM6.9 billion, the report added.