1MDB bond default: high-stakes damage not ruled out

Singapore

BONDHOLDERS and bankers were scrambling to assess the fallout of a bond default triggered after scandal-ridden 1MDB failed to meet a coupon payment of US$50 million on its US$1.75 billion notes even as the development fund sought to assure investors it has the capacity to meet all other financial obligations and that cross defaults are limited to two bond tranches.

Opposition lawmaker Tony Pua, however, highlighted the government could be forced to step in and bailout 1MDB to the tune of at least RM20 billion (S$6.9 billion).