Last updated : 6/10/19 11:21 AM     

EPF's RM1.2 Billion Financing Protects Against Forex Risks

With regards to the purported RM12 billion loan taken by the Employees Provident Fund (EPF) with two lenders namely Standard Chartered and DBS, which is being circulated on WhatsApp, the EPF wishes to clarify that the purpose of the loan is to refinance our assets in the United Kingdom to help protect against volatilities in foreign currency and exchange rates.

 

Offshore financing reduces the foreign currency exposure of the global real estate investment and, therefore, is part of investment best practice. The deal is being undertaken through our subsidiary Kwasa Global and is still under negotiation, though the loan amount involved is RM1.28 billion, and not RM12 billion as has been stated in the WhatsApp.

 

All investment decisions made by the EPF are in accordance with our risk-return profile, in line with ensuring that members’ retirement savings are safe and well managed.

 

Issued by:

Corporate Affairs Department

Employees Provident Fund

Date: 20 October 2016