Goldman Criticised Over Bond Deal Profits

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Goldman Sachs is facing sharp criticism over its potential profits for arranging a $3bn bond deal for a Malaysian government fund ahead of Sunday’s national elections.

In March, a Malaysian government-controlled fund called 1MDB raised capital in a deal that involved Goldman buying $3bn of bonds for $2.71bn, roughly 90% of their face value, according to documents obtained by the Financial Times.

One Malaysian opposition member has criticised the deal, saying Goldman stands to make unusually large profits for a government debt deal.

In the meantime, Bloomberg reports that Apple paid $53.25m in fees to underwriters led by Goldman Sachs and Deutsche Bank  for the iPhone maker’s $17bnn bond offering, the largest sale on record.

Goldman Sachs, which underwrote 72% of the sale according to a regulatory filing, would get $38.3m if commissions are divided in proportion to firms’ involvement.

Goldman Sachs criticised over $3bn Malaysia bond deal (subscriber content)

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