Press Releases
24 May 2018
Khazanah Nasional statement on RCCPS redemption by Ministry of Finance in August 2017
We refer to the Reuters article, “Former Malaysia government used money raised from Khazanah to pay 1MDB dues – sources”, dated 24 May 2018.
Khazanah Nasional Berhad (“Khazanah”) wishes to clarify the following facts:
- On 7 March 2011, RM3.0b Redeemable Cumulative Convertible Preference Shares (“RCCPS”) was issued by Khazanah to the Ministry of Finance (“MOF”). The RCCPS is essentially capital injected that MOF as our 100% shareholder has a right to call back (i.e. redeem) at any time.
- On 14 March 2014, MOF redeemed RM1.8b of the RM3.0b issued.
- On 11 August 2017, MOF redeemed a further RM1.199b of the remaining RM1.2b RCCPS.
- It is important to note that as the sole holder of the RCCPS, MOF possesses the right to redeem the RCCPS at any point of time.
- The redemption of the RCCPS is in effect a repayment of shareholder capital by Khazanah to MOF.
- Further, it is also relevant to note that Khazanah has no control over the utilisation of the funds once the RCCPS has been redeemed.
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