KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) said it has redeemed the full US$2.318 billion invested by the company in a Cayman Islands registered fund.

“Following a commitment made by the chairman of the board of directors in a statement dated Dec 23, 2014, 1MDB can confirm that it has now redeemed in full the US$2.318 billion invested by the company in Cayman Islands,” said 1MDB president and group executive director Arul Kanda in a statement yesterday.

He added that the funds originated from the repayment of a loan provided to PetroSaudi in 2011 in the form of murahaba notes, following the termination of an earlier agreement to enter into a joint venture with the company.

“The notes, which were paid back in full, with interest, were subsequently invested in a fund under the regulatory supervision of the Cayman Monetary Authority,” said Kanda.

1MDB had previously redeemed US$1.215 billion, representing 60% of the funds invested, and has now redeemed an additional US$1.103 billion (RM3.92 billion), representing the remaining balance of the total US$2.318 billion that was originally invested.

“1MDB hopes that the redemption of these funds, in full, draws a line under this matter,” said Arul.

The company had previously come under fire for its Cayman investments from opposition federal lawmakers and former prime minister Tun Dr Mahathir Mohamad.

This article first appeared in The Edge Financial Daily, on January 14, 2015.