1MDB 2023 dollar bonds indicated at around 80, traders say

HONG KONG: Malaysian state fund 1MDB’s dollar bonds due 2023 were indicated little changed around 80 cents on the dollar on Friday, traders say.

The bonds slid 11.7 cents on Thursday, the sharpest decline since 2016 according to data compiled by Bloomberg going back to that year, after Tun Dr Mahathir Mohamad’s surprise victory in Malaysia’s general election that ousted Datuk Seri Najib Razak.

Note: Najib faced public anger over a money laundering scandal involving hundreds of millions of dollars siphoned from 1MDB. He has denied wrongdoing

Note: On campaign trail, Mahathir lambasted Najib as a “thief.” In the immediate aftermath of his election win, Dr Mahathir said he is not seeking revenge, but the rule of law will be fully implemented. 

“If the law says Najib has done something wrong, then he will have to pay the consequences,” Dr Mahathir said.

The fate of some credits such as 1MDB will get clearer in the ensuing weeks or months: Citic CLSA note dated May 11. - Bloomberg