1MDB makes coupon payment on Islamic bond

PETALING JAYA: 1Malaysia Development Bhd (1MDB) yesterday 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 Kandasamy said in a statement.
The payment is the latest that 1MDB has had to service, notwithstanding the interest payments due on the US$1.75 billion (RM7.2 billion) fixed rate 5.75% notes due 2022 that were issued by 1MDB (Langat) Ltd, and the US$1.75 billion fixed rate 5.99% notes due 2022 that were issued by 1MDB Energy Ltd which it had defaulted on.
1MDB is in dispute with International Petroleum Investment Company (IPIC) over payment on the Langat and Energy notes. The fund reiterated that it will continue to honour current debt obligations, notwithstanding the dispute.