1MDB Dollar Bonds Slump to Record as U.S. Probes Hurt Sentiment
- State investment company's woes giving no respite to ringgit
- Company's debt financing costs to increase: RHB Research
This article is for subscribers only.
1Malaysia Development Bhd.’s dollar bonds fell to a record as a plunge in the ringgit pushes up financing costs for the debt-ridden state investment company under investigation in the U.S.
The $3 billion of outstanding 4.4 percent notes maturing in 2023 were paying 75 cents on the dollar as of 2:19 p.m. in Kuala Lumpur, a drop of 4.7 percent from last week, data compiled by Bloomberg show. Reports that the U.S. Federal Bureau of Investigation is probing 1MDB over alleged money laundering, and the U.S. Justice Department is looking into property purchases associated with Prime Minister Najib Razak’s stepson, are helping spur the ringgit’s worst weekly slide in more than 17 years.