According to Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah, Tan Sri T. Ananda Krishnan’s Tanjong Public Limited Company had arranged the funding for 1 Malaysia Development Berhad (1MDB) with the help of private investors. — Picture by Yusof Mat Isa
KUALA LUMPUR, March 25 — Billionaire Tan Sri T. Ananda Krishnan’s Tanjong Public Limited Company had helped 1 Malaysia Development Berhad (1MDB) secure the financing it needed to settle its RM2 billion loan to banks in February, Parliament was told today in the latest revelation on the controversy.
According to Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah, Tanjong had arranged the funding with the help of private investors.
“1MDB’s cash flow is not enough and it took a RM2 billion refinancing,” he said, adding that refinancing is a normal procedure in the corporate sector.
Ahmad Husni noted there has been some misconception on the matter and clarified that the loan had not been refinanced by the banks.
“It is not the bank but from outside and was managed by Tanjong,” he said referring to Ananda’s company.
“Tanjong helped to obtain the RM2 billion fund with a principal repayment tenure of 15 months, and interest repayment (to be settled) within six months… there is no exchange risk and (this) was arranged by Tanjong,” he added.
Ahmad Husni’s claim today contradicts a written reply last week in Parliament, in which the Finance Ministry said that 1MDB’s RM2 billion loan was settled with its fund from the Cayman Islands and not with Ananda’s help.
“Regarding the loan which 1MDB allegedly received from millionaire Ananda Krishnan, the report is not true,” news portal The Malaysian Insider (TMI) reported the ministry saying in its written reply to Batu MP Chua Tian Chang.
TMI reported that the RM2 billion is part of a RM5.5 billion bridging loan to the relevant banks taken by 1MDB subsidiary, Powertek Investment Holdings Sdn Bhd to refinance a RM6.17 billion bridging loan taken in 2012. It was to part finance the purchase of power assets.
The ministry’s written reply reportedly said that 1MDB had withdrawn its US$2.318 billion (RM8.5 billion) offshore savings in the Cayman Islands in two tranches, and had used the first tranche to pay back “loan interest, working capital and other scheduled commitments”.
This tranche was US$1.215 billion, while the second tranche of US$1.103 billion was still kept in foreign currency at BSI Bank Limited Singapore.
The second tranche, the ministry said, would be used to repay loans in foreign currency that were due this year.
- See more at: http://www.themalaymailonline.com/malaysia/article/now-minister-claims-ananda-krishnans-tanjong-helped-1mdb-settle-rm2bil-loan?utm_medium=twitter&utm_source=twitterfeed#sthash.jR5bS0KX.dpuf
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