KUALA LUMPUR (May 24): Malaysian Government-owned investment arm Khazanah Nasional Bhd said today that it had issued RM3 billion worth of redeemable cumulative convertible preference shares (RCCPS) to the Ministry of Finance (MOF) on March 7, 2011. 

Khazanah said the RCCPS was essentially injected capital which MOF has the right to redeem at any time.

In a statement today, Khazanah said the MOF owns 100% of Khazanah. 

"On 14 March 2014, MOF redeemed RM1.8b of the RM3.0b issued. On 11 August 2017, MOF redeemed a further RM1.199b of the remaining RM1.2b RCCPS.

"It is important to note that as the sole holder of the RCCPS, MOF possesses the right to redeem the RCCPS at any point of time. The redemption of the RCCPS is in effect a repayment of shareholder capital by Khazanah to MOF. Furthermore, it is also relevant to note that Khazanah has no control over the utilisation of the funds, once the RCCPS has been redeemed," Khazanah said.

Khazanah said its statement today is in response to a Reuters article entitled “Former Malaysia government used money raised from Khazanah to pay 1MDB dues — sources ”