KUALA LUMPUR,Aug 12, 2015:
1MDB will raise enough money from new investments to pay off its debts.
1Malaysia Development Bhd’s (1MDB) president and group executive director Arul Kanda said 1MDB was in the midst of attracting investors to buy some shares so that it can pay off some debts.
“We have acquired Edra Global Energy Berhad which we can raise RM16 billion.
“In June, we signed a deal with Abu Dhabi’s International Petroleum Investment Company (IPIC) that can raise another RM16 billion.
“We are trying to bring development partners into Bandar Malaysia in which the project will be valued at RM11-12 billion,” Arul Kanda told the Soal Jawabprogramme on TV3 tonight in an hour-long interview.
Arul Kanda said proceeds from these investments will go to paying off debts
“It will take 4-6 months to pay off these debts.”
He said investors who had the ability to project value of a project in the future will see the immense value of Bandar Malaysia.
“The project is the only single biggest piece of land left that is close to KLCC and will be connected by two MRT stations, buses and KTM.
“It was the same case for KL Sentral 20 years ago. Those who saw its potential were the only ones who valued the project highly, but overall the confidence level of the project was low, but look at it now.”
Arul Kanda, however, also admitted that 1MDB’s initial issue was mainly due to a mismatch of cash flow and liquidity, which prompted him to take on the job in the first place.
“1MDB’s original plan was to launch an IPO on November 2013 prior to the discovery of a mismatch in cash flow and liquidity.”
He said there were 48 press releases given to public in a bid to explain the business.
“1MDB is a big and complex company. We are not a listed company, which is why we have to give a lot of information on our business.
“The most critical questions are just allegations on which investigations have been carried out and the Auditor-General has conducted investigations and the interim report was done professionally.”
He said 1MDB’s press was mostly bad because people failed to see the positives of the business and only focus on the negatives in the short term.
“It is however business as usual for us.
“We look at the whole picture and the whole picture was what I looked at before taking on the job
“Other challengers like the political pressure is not my field and I find that quite a hard challenge to overcome.”
Arul Kanda said people must focus on the facts of 1MDB.
“It is the biggest power company in Malaysia.
“It has a lot of assets in US dollars.
“TRX is being developed at a cost of RM3 billion. Most of its development is underground and not visible to people. There will be 8 military camps around Malaysia and will be completed in the end of 2016
“These results will be seen soon and then people will understand.”