KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) needs about RM42 billion to settle its loans, together with interest, between November 2015 and May 2039.
This is according to Auditor-General in its executive summary of the audit report on the embattled strategic development fund.
The report was declassified on Tuesday and verified by Auditor-General Tan Sri Dr Madinah Mohamad.
The report said the RM42 billion was based on assumptions that 1MDB’s rationalisation plan would be implemented immediately and that no new loans were taken after October 2015.
The payable amount fluctuated throughout the years, it added.
The report noted that 1MDB’s issued share capital was only RM1 million during the 2010-2014 period.
Such a small share capital indicates 1MDB’s instability, as the fund was forced to borrow in order to finance its activities, it added.
1MDB’s payment commitments amounted to RM4.88 billion in 2016, followed by RM14.74 billion in 2023 and RM5.14 billion in 2039.
The company also needed a minimum of RM1.52 billion each year, from November 2015 to May 2024 to settle its loans.
The report said between 2010 and 2014, 1MDB had obtained 17 loans with a nominal value of RM42.88 billion and received RM39.17 billion in cash.
This was not enough to generate sufficient cash flow to pay back the loans, it added.
As of October 31, 2015, 1MDB’s outstanding loans and financing totalled up to RM55 billion with assets amounting to RM58.6 billion.
A sum of RM20.31 billion of the loans and financing had received federal government guarantees and assistance.
The report noted that 1MDB’s Islamic Medium Term Notes (IMTN) that was issued in 2009 and mature in 2039, will have a coupon repayment rate of RM287.5 million a year.