1MDB makes payment to IPIC

1Malaysia Development Berhad (1MDB) has issued a statement to say that they have made the necessary payment to Abu Dhabi’s investment company, International Petroleum Investment Company PJSC (IPIC).

1MDB says that they are "pleased to announce that pursuant to the Amendment dated 8 August 2017 to the Settlement Deed with Minister of Finance (MOF) and IPIC, 1MDB has now remitted, to date, the equivalent of US$360 million to IPIC".

With this payment tranche made, the balance of the original 31 July 2017 payment obligation to IPIC is accordingly now due on 31 August 2017.

1MDB stressed that ‘all funds paid to IPIC are from proceeds of the on-going rationalisation programme’.

The sum 1MDB requires to make to IPIC amounts to US$1.2 billion and is due to IPIC by 1st January 2018, as per the terms of the private arbitration between MOF, 1MDB, and IPIC. The arbitration took place earlier this year in April in London. Under the agreement, 1MDB and the MOF also assumed all responsibility for all future interest under two bonds worth in excess of US3.5 billion.