What happened to USD $5 billion Petronas raised in Sukuk 5 months ago?

Someone sent me this. Thank you.

Is Petronas planning to use the USD $5 billion it raised via Sukuk earlier this year to either:

- pay the promised USD $6.5 billion dividend to the government this year.

... or perhaps ...

- pay some 1MDB debts.

1.  “I do not expect our cashflow from operations this year to meet our capital expenditure and dividend commitments."

“This means we will have to persevere through with more austerity measures and will have to draw on our reserves. Cost management and efficiency will continue to be a key focus across the organisation."

Question: what exactly happened to the USD $5 billion that Petronas raised from selling bonds (sukuk) ealier this year? The $5 billion was supposed to be used forcapex.


So, despite raising $5 billion less than 6 months ago, Petronas CEO now announces that they do not expect to meet their financial commitments this year.


So I'll repeat the question in a slightly different way: how was the USD $5 billion raised from bond sale spent? (in less than 6 months?)


Reuters article from March:


Malaysia's Petronas says $5 billion bond issue for capex, possible M&As


Reuters article from 2 days ago:


Malaysia's Petronas says operations won't cover 2015 dividend, capex demands


Is Petronas planning to use the USD $5 billion raised by sukuk (bonds) to pay this year's USD $ 6.5 billion dividend to the government?


Petronas says to draw on reserves to meet dividend commitments

Malaysia‘s Petroliam Nasional Bhd (Petronas) today said cash from operations will cover neither capital expenses nor committed dividends for 2015, forcing the state-owned oil firm to draw on reserves and further cost savings.

Petronas contributes almost half of Malaysia‘s oil revenue. But weak global prices have depressed income, leaving the country with a devalued currency and at risk of a credit-rating downgrade, while debts mount at state investment fund 1MDB.

... Still, “all the plans are in place” to meet the RM26 billion [ USD $6.5 billion ] dividend promised to the government this year, Wan Zulkiflee said.

2. The Chairman of Petronas is on the Board of Advisors of 1MDB:

www.1mdb.com.my/governance/board-of-advisors