trending Market Intelligence /marketintelligence/en/news-insights/trending/iVizr2kcCwL22Q2VlaAevA2 content esgSubNav
In This List

Report: Goldman proceeded with $1.75B 1MDB bond sale without IPIC's board OK


S&P Capital IQ Pro | Powering Your Edge


Street Talk Episode 81: Amid strong recovery, Banc of California hearing more M&A chatter


S&P Capital IQ Pro | Unrivaled Sector Coverage


Banking Essentials Newsletter: September Edition

Report: Goldman proceeded with $1.75B 1MDB bond sale without IPIC's board OK

Goldman Sachs Group Inc. proceeded with at least one bond sale for 1Malaysia Development Bhd. without the approval of the board of Abu Dhabi's state-owned International Petroleum Investment Company, which was the chief guarantor of the bond, The Straits Times reported Dec. 20, citing "senior financial executives close to the situation."

The investment bank merely relied on senior International Petroleum Investment Company officials' approvals to go ahead with the $1.75 billion IPIC-guaranteed bond that it raised for 1MDB in 2012, according to the report.

In addition, Goldman Sachs reportedly relied on correspondence between senior IPIC officials and high-ranking Malaysian government officials to clear its compliance teams' approval hurdles.

The investment bank has acknowledged that it did not seek an IPIC board resolution for the bond issue, the news outlet noted.

International Petroleum Investment Company and subsidiary Aabar Investments PJS previously filed a lawsuit alleging Goldman Sachs's "central role" in the 1MDB corruption scandal.