IPIC confirms receiving funds from 1MDB

PETALING JAYA: International Petroleum Investment Company PJSC (IPIC) confirmed that it has received payment from 1Malaysia Development Bhd (1MDB).

"Further to the announcement of Aug 8, 2017, IPIC has now received the funds required by Aug 12, 2017 for the extension agreed with Minister of Finance (Incorporated) Malaysia (MoF Inc) and 1MDB to be effective," IPIC said in a filing with the London Stock Exchange today.

"Accordingly, MoF Inc and 1MDB now have until Aug 31, 2017 to complete the performance of the payment obligations that were initially due to be performed by July 31, 2017 under the settlement and the consent award and to pay default interest on the delayed payment," it said.

Earlier today, 1MDB said in a statement that it has made a payment of US$350 million to IPIC, pursuant to the amendment dated Aug 8, 2017 to the settlement deed with MoF Inc and IPIC.

"1MDB has now remitted, to date, the equivalent of US$350 million to IPIC. The balance of the original July 31, 2017 payment obligation to IPIC is accordingly now due on Aug 31, 2017," it said.

It said that all funds paid to IPIC are from proceeds of the on-going rationalisation programme.

Earlier this week, IPIC agreed to grant MoF Inc and 1MDB an extension till end of August to meet their payment obligation, subject to them making a minimum payment of US$310 million by Aug 12. 1MDB had missed its original payment deadline of July 31 as well as a five-day extension.