1MDB to Cut Debt by $9.4 Billion After Sales, Malaysian PM Says
- Company had debt totaling $9.8 billion as of March 2014
- 1MDB's major challenges are now behind it, Najib says
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1Malaysia Development Bhd. will trim its debt by 40.4 billion ringgit ($9.4 billion) once it completes agreed asset sales, Prime Minister Najib Razak said Thursday after the state-owned fund announced its latest asset-disposal pact.
1MDB said earlier Thursday it would sell a 60 percent stake in a Kuala Lumpur project known as Bandar Malaysia Sdn. to a joint venture between Iskandar Waterfront Holdings Sdn. and China Railway Construction Corp. for 7.41 billion ringgit. The disposal is part of a broader plan the company announced in February to unwind its assets after drawing criticism from lawmakers for amassing about 42 billion ringgit of debt in its less than five years of existence.