The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Kuala Lumpur / DPA
1Malaysia Development Bhd (1MDB) will make further announcements on debt reductions in the coming weeks.
It has also fully settled a 700 million ringgit (US$173.57 million) loan based on the proceeds from the sale of Edra Global Energy Bhd.
On Saturday, 1MDB president and chief executive officer Arul Kanda Kandasamy said the sale of Edra had substantially reduced 1MDB’s debt and that it now had a cash surplus of 2.3 billion ringgit to carry on with activities related to the infrastructure development for the Tun Razak Exchange and pay interest on other debts. On Wednesday, 1MDB completed the sale of its power assets under Edra to China General Nuclear Power Corp and its subsidiaries for 9.83 billion ringgit cash.
Arul Kanda concluded that all entities must be more transparent in their reporting and should reduce excessive debt as well as high risk in the management of the company.
Among the lessons to be learned from the 1MDB experience is in managing the capital structure and that use of excessive debt should be reduced.