1MDB agrees to arbitration in dispute with IPIC

PETALING JAYA: 1Malaysia Development Bhd (1MDB) yesterday agreed to the Request for Arbitration (RFA) filed by Abu Dhabi’s International Petroleum Investment Company (IPIC) and Aabar Investments PJS, confident in its legal position.

1MDB has submitted a formal and robust response to the RFA through its legal counsel, Weil Gotshal & Manges, a specialist in international litigation.
1MDB reiterates that, notwithstanding the dispute with IPIC, it will continue to implement the rationalisation plan and remains able to honour its current debt obligations.

Last month, 1MDB paid the RM1.579 million interest coupon on the RM2.4 billion Bandar Malaysia sukuk due 2024. In May, 1MDB made a scheduled coupon payment amounting to RM143.75 million on its RM5 billion 5.75% Islamic Medium Term Notes due 2039.

IPIC and Aabar submitted an RFA to the London Court of International Arbitration last month claiming they are owed US$6.5 billion by 1MDB and the Ministry of Finance.