1MDB makes coupon payment on RM5b bond

PETALING JAYA: 1Malaysia Development Bhd (1MDB) has today made a scheduled coupon payment amounting to RM143.75 million on its RM5 billion 5.75% Islamic Medium Term Notes (IMTNs), due 2039.
"1MDB has ample liquidity to make interest payments and service its current debt obligations. The strong progress achieved on the rationalisation plan further supports 1MDB's stable financial position," its president and group executive director Arul Kanda said in a statement.
The bond payment is the latest that 1MDB has had to service, notwithstanding the interest payments due on the US$1.75 billion fixed rate 5.75% notes due 2022 that were issued by 1MDB (Langat) Limited (Langat notes), and the US$1.75 billion fixed rate 5.99% notes due 2022 that were issued by 1MDB Energy Limited (Energy notes) which it had defaulted on.
1MDB is currently in dispute with International Petroleum Investment Company (IPIC) over the payment of the Langat and Energy notes.
"1MDB reiterates that, notwithstanding the dispute with IPIC, it will continue to honour current debt obligations. 1MDB remains focused on resolving the dispute with IPIC, and is committed to a continued process of dialogue and working toward a solution that is in the best interests of all stakeholders," Arul said.