KUALA LUMPUR: 1Malaysia Development Bhd (1MDB), a state-owned development company, may sell Islamic bonds to partly fund the construction of an US$8 billion (RM25.2 billion) financial district in Kuala Lumpur.
"We have a RM2 billion bridging loan coming due in 2013 and are looking at all options," chief executive officer Shahrol Halmi said in an interview in Kuala Lumpur yesterday.
"We may sell medium-term syariah-compliant notes if conditions are conducive."
1MDB is jointly developing the so-called Kuala Lumpur International Financial District (KLIFD) with Abu Dhabi's Mubadala Development Corp, said Shahrol.
The initial phase is due to start in the first half of this year at an estimated cost of RM2 billion and 1MDB may also look into setting up an Islamic real-estate fund for financing, he said.
The company, formerly known as Terengganu Investment Authority Bhd, last sold RM5 billion of 30-year syariah-compliant bonds in May 2009.
The debt, which was guaranteed by the Malaysian government, is rated A3 by Moody's Investors Service.
By Bloomberg
Thursday, January 12, 2012
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