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.
END