1MDB and IPIC agree on arbitration settlement

1Malaysia Development Berhad (1MDB) and International Petroleum Investment Company (IPIC) have agreed on a settlement of the arbitration proceedings at the London Court of International Arbitration.

"As per the settlement, 1MDB will, among others, make certain payments to IPIC and will assume responsibility for all future interest and principal payments for two bonds issued by 1MDB Group companies due in 2022," it said in a statement today.

These obligations would be met by 1MDB, primarily via monetisation of 1MDB-owned investment fund units.

"1MDB is pleased to confirm that a first tranche monetisation of approximately US$50 million has been received, in cash.

"This arbitration settlement and monetisation of investment fund units represents the resolution of a significant challenge, and is a major part of the 1MDB rationalisation plan, which is now at its final stages of conclusion," it said.

Meanwhile, in a separate statement, the Prime Minister''s Press Secretary, Datuk Seri Tengku Sariffuddin, said the government was pleased that IPIC and 1MDB have resolved their differences in an amicable manner.

"We also note the monetisation of all 1MDB-owned investment fund units.

"These significant events represent the continued positive progress made by 1MDB which is nearing the completion of its rationalisation programme," he added.

- BERNAMA