SRC regularly servicing KWAP loan

KUALA LUMPUR: SRC International has been servicing its loan from the Retirement Fund Incorporated (KWAP) regularly, KWAP chief executive officer Wan Kamaruzaman Wan Ahmad said today.

Speaking on the sidelines of Invest Malaysia 2016, Kamaruzaman said SRC had, in addition, been submitting its reports regularly and meeting the conditions of the loan.

He said he could not comment on what their client SRC did with the money as it was up to them to decide how to utilise the money.

Kamaruzaman said KWAP only knew, in general, that the loan was for energy related investments globally.

He said what was important for KWAP was that SRC paid interest on the loan regularly, and the fact that KWAP had safeguarded itself via a government guarantee.

He explained that the loan was split into two tranches – one given in 2011 and the other in 2012 – each valued at RM2 billion, with a repayment period of 10 years.

The first five years of loan repayment would service only the interest, while the remaining five years would see the interest and principal paid up.

According to Kamaruzaman, the interest rate would be pegged against Malaysian Government Securities (MSG), plus a certain mark up.

Prime Minister Najib Razak last week told Parliament that he could not reveal the details of the RM4b KWAP loaned to SRC in 2011 to purchase Gobi Coal & Energy in Mongolia, as the accounts had yet to be audited.

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