First tranche of RM1.8 billion paid by AMMB Holdings Berhad for 1MDB-Related settlement

The Ministry of Finance is pleased to announce that following its previous announcement dated 26 February 2021, the Government has received the first payment from AMMB Holdings Berhad of RM1.8 billion, which has been deposited into Malaysia’s Assets Recovery Trust Account. The monies transferred represent the partial settlement related to 1Malaysia Development Berhad (1MDB). The remaining settlement payment of RM1.03 billion will be settled by AMMB Holdings Berhad in December 2021 and July 2022, amounting to RM515 million each.

To date, the Trust Account - under the custody of the Accountant General’s Department of Malaysia - has received a total of RM18.176 billion of funds seized/returned or settlement in connection with 1MDB. These funds have been/will be used to settle the outstanding debts of 1MDB and SRC.

Finance Minister, Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz said, “To date, the Government has repaid RM12.54 billion of 1MDB's debt and RM3.8 billion of SRC's debt. As at 30 June 2021, the outstanding debt comprising principal and coupons/ profit/ interest for bonds, Sukuk and term loans, amounted to RM39.66 billion (1MDB) and RM1.85 billion (SRC). However, the current balance of the Trust Account is only enough to pay off the principal and interest of 1MDB's debt for 2021 and 2022 only.”

Once all the Trust Account funds are utilised, the Government will continue to bear the obligation to pay the balance of 1MDB's debts, whose issuance were backed by Government Guarantee and Letter of Support. The Ministry of Finance will always ensure adequate allocation to settle the debts of 1MDB and SRC, in order to manage the national financial burden created through these entities.

Ministry of Finance, Malaysia
Putrajaya
2 July 2021