The government now says that billionaire Ananda Krishnan's Tanjong Public Limited firm had helped secure RM2 billion in "refinancing" for the 1Malaysia Development Berhad (1MDB) via private investors and that the firm did not directly loan the money to the beleaguered state investment arm.

Second Finance Minister Husni Hanadzlah told the Dewan Rakyat today that Tanjong had helped "manage" the refinancing for 1MDB and it was a form of refinancing as it was related to 1MDB's RM8.5 billion purchase of Powertek Energy which was owned by Ananda.

Previously, the government denied reports that Ananda Krishnan had injected funds into 1MDB to prevent it from defaulting on local bank loans.

"Regarding the loan which 1MDB allegedly received from millionaire Ananda Krishnan, the report is not true," the Finance Ministry had written in a parliamentary reply on March 14.

"Refinancing is normal in the corporate sector, only that this refinancing was not from a bank. It was from private investors, and was managed by Tanjong," Husni said today.

Husni said that the refinancing exercise is to be settled over 15 months for the principal amount, and the interest over six months.

"There is no exchange risk for the funds, so any exchange rate changes will be borne by the investors and not 1MDB," he said.

"Just that this was arranged by Tanjong, that's all," he added.

Husni reiterated that 1MDB opted to park its RM4 billion amount repatriated from Cayman Islands in Singapore because it intends to use the money to service loans in US dollars.