By BERNAMA
1MDB (1Malaysia Development Bhd) is ready to kick-start the operations of the strategic RM18 billion Malaysia-Abu Dhabi economic partnership, after successfully raising US$3 billion for investments in strategic and important high-impact projects like energy and strategic real estate.
The government’s strategic development vehicle said through the 50:50 joint venture company, Abu Dhabi Malaysia Investment Company (ADMIC), 1MDB and its partner Aabar Investments PJS will leverage on their global resources to drive these initiatives.
“Both countries are committed to now kick-start the operations of this strategic RM18 billion partnership.
“1MDB opted for a private placement to ensure the timely completion of this economic initiative,” 1MDB said in a statement today. The capital is an integral part of the Government-to-Government collaboration between Malaysia and Abu Dhabi on a strategic partnership sealed on March 12, 2013.
1MDB said its Tun Razak Exchange (TRX) could potentially be the first investment undertaken by ADMIC.
TRX is estimated to generate a gross development value of RM26 billion and attract 250 of the world’s leading companies, creating 40,000 new job opportunities for knowledge workers.
The multiplier effect generated will produce up to 500,000 new jobs, directly and indirectly throughout Malaysia, by the time it is fully completed.
“1MDB has also earmarked US$2.318 billion, which are proceeds originating from its 1MDB-PetroSaudi International joint venture, for future investments,” 1MDB said.
1MDB Chief Executive Officer Mohd Hazem Abd Rahman said the success inkickstarting the partnership underlines investor appetite and confidence in the Malaysia-Abu Dhabi partnership as well as in Malaysia as a sustainable growth centre enjoying peace, stability and good governance.
“The two companies (1MDB and Aabar) are government owned and supported,” he added.
He said the 1MDB’s bonds had also received an A- rating from rating agency Standard & Poor’s (S&P), which also assigned an “axAAA” Asean regional scale rating.
“1MDB is transparent and open about the placement of its funds. This was reported in the company’s annual return lodged with the Companies Commission of Malaysia.
“It is an interim measure until we identify suitable investment opportunities. The returns generated match or exceed the cost of financing,” he said.
Mohd Hazem also said 1MDB is considering investment opportunities in all of its core sectors, including global expansion when it supports strategic initiatives that will bring long-term benefits to Malaysia.
– BERNAMA
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