Thursday, May 5, 2016

1MDB INTEREST PAYMENTS FOR WHAT ITS WORTH

Another USD 52,412,000 interest payment is due Wednesday, 11 May 2016.

Lets forget the dispute between 1MDB and IPIC for a moment.

Here's a lowdown of interests to be paid counting only the 3 Goldman Sachs managed bonds, two 2012 USD 1.75 billion bonds issued by 1MDB Energy (Langat) Limited (5.75% coupon) and 1MDB Energy Limited (5.99% coupon) respectively and a 2013 USD 3 billion bond issued by 1MDB Global Investment Limited 4.40% coupon), on a yearly basis.

The yearly interest for the above bonds are as follows (1 USD = MYR 3.90):

  1. 1MDB Energy (Langat) Limited    Rm   392,433,600.00
  2. 1MDB Energy Limited                  Rm   408,813,600.00
  3. 1MDB Global Investment Limited Rm   514,800,000.00

Yearly Grand Total                       Rm 1.316 billion

That works out to a whopping Rm 3,605,609.00 a day!

In 6 and 7 years time when these bonds mature, 1MDB has to fork out a humongous USD 6.5 billion or Rm 25.35 billion.

And how will 1MDB obtain this amount of money?

One clue is, when 1MDB defaulted on the interest payment, it's bonds actually became attractive.

Bond buyers won't blink at all.

Hey, it's a sovereign backed bond. So, what's the worry.




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