Malaysian bonds rise as default risk drops on 1MDB asset sales
Kuala Lumpur
MALAYSIAN bond yields fell to the lowest level since August and the cost of insuring the debt against default declined as planned sales of land and power assets by a state-owned company improved investor confidence.
1Malaysia Development Bhd is finalising the sale of a property project in Kuala Lumpur known as Bandar Malaysia and will clear its debt by the end of the year, New Straits Times reported on Thursday, citing 1MDB president Arul Kanda. The investment company, which has come under scrutiny from lawmakers for accumulating around RM42 billion ($14 billion) of debt in less than five years and for almost defaulting on a loan, agreed to dispose of its power assets to China General Nuclear Corp on Monday for RM9.83 billion.
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