Were government letters of support crucial for the third 1MDB bond?

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Government Letters of Support Were Crucial for the Third 1MDB Bond

Government letters of support were indeed critical for the third 1Malaysia Development Berhad (1MDB) bond, known by the codename Project Catalyze. This was a key requirement that differed from the financing structures of the previous two 1MDB bonds.
Involvement of Key Officials in Securing Support

Former Goldman Sachs banker Tim Leissner testified that securing a letter of support from Malaysia's Ministry of Finance was essential for the US$3 billion third bond. Unlike the first two bonds, which had guarantees from Abu Dhabi's sovereign wealth fund Ipic, this specific transaction necessitated official Malaysian government backing. Leissner detailed meetings with Datuk Azlin Alias, who was Najib's principal private secretary at the time, and Datuk Amhari Efendi Nazaruddin, along with officials from the Finance Ministry, to facilitate the process of obtaining this crucial letter.
Role of Azlin Alias in the Transaction

Datuk Azlin Alias played a significant role beyond just administrative support. Leissner stated that Azlin was actively involved in obtaining the government's letter of support for the third 1MDB bond. Furthermore, Azlin participated directly in rating calls with credit rating agencies Standard & Poor's and Moody's concerning this transaction, underscoring his involvement in the bond's financial structuring and market assessment.
Direct Engagement with Prime Minister Najib Abdul Razak

The ultimate approval for the government's letter of support required direct presidential engagement. Tim Leissner personally met with Malaysia's then Prime Minister, Datuk Seri Najib Abdul Razak, in his Putrajaya office. This meeting was specifically to obtain Najib's signature on the letter of support, signifying the highest level of government endorsement for the US$3 billion bond issuance.

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Were government letters of support crucial for the third 1MDB bond?

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