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Malaysia's 1MDB repays US$975 million loan: statement

[KUALA LUMPUR] Malaysian state investment fund 1MDB has fully repaid a US$975 million loan owed to a syndicate of international banks, it said in a statement on Monday.

The move reflects the fund's move to reduce its debt levels, in line with a rationalisation plan approved by the cabinet, it said in the statement.

1MDB, which owns property and energy assets and whose advisory board is chaired by Malaysian Prime Minister Najib Razak, has been dogged by controversy over its nearly 42 billion ringgit (S$15 billion) of debts and alleged financial mismanagement.

Malaysia's central bank said on June 3 it had launched a formal enquiry into 1MDB and issued a legal directive for information, seeking to establish whether there had been any violation of its rules.