1MDB to use money from rationalisation plans to pay IPIC

1Malaysia Development Fund (1MDB) which has missed the July 31, 2017 deadline of payments to Abu Dhabi’s International Petroleum Investment Company (IPIC) said it will make the payment in August 2017.

The amount due from 1MDB to IPIC is US$603 million.

This amount is half of the total payment due to the IPIC by both the 1MDB and Malaysia’s Ministry of Finance (MOF). The other half of the payment is due to IPIC at the end of 2017.

1MDB implicitly reaffirms the public that they have the necessary funds to make the payment to IPIC, and that these funds will come from the rationalisation plan that the company is currently implementing.

Bloomberg and Reuters reported that the IPIC is expected to make an announcement in London on Tuesday regarding this matter.

1MDB in a statement said it is awaiting funds that were due to be received in July 2017.

"Due to the need for additional regulatory approvals, the receipt of those funds has been delayed to August 2017," 1MDB said. "As these are the funds which will be used to pay IPIC, 1MDB has written to IPIC to inform them of our commitment to meet the obligations, originally due on 31 July 2017, in August 2017," the statement read.