IPIC says 1MDB has paid rest of money due by today

PETALING JAYA: State-owned strategic investment fund 1Malaysia Development Bhd (1MDB) has made the remaining payment due by the end of this month to International Petroleum Investment Co PJSC (IPIC) under a settlement agreement between IPIC and Minister of Finance (Incorporated) Malaysia (MoF Inc) and 1MDB.

“IPIC has now received the funds required to be paid by Aug 31, 2017 to complete the performance by MoF Inc and 1MDB 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,” IPIC told the London Stock Exchange today.

1MDB said in a separate statement that all funds were paid from proceeds of the ongoing ratiionalisation programme.

The statement follows an earlier announcement made on Aug 11, 2017, in which IPIC confirmed that it had received payment from 1MDB in order for the extension agreed with MoF Inc and 1MDB to be effective.

IPIC had agreed to grant MoF Inc and 1MDB an extension un til the end of August to meet their payment obligations, subject to their making a minimum payment of US$310 million (RM1.32 billion) by Aug 12. 1MDB had missed its original payment deadline of July 31, 2017 as well as a five-day extension.

1MDB had remitted the equivalent of US$350 million to IPIC by Aug 11, 2017 while the balance of the original July 31, 2017 payment obligation to IPIC was to be settled by Aug 31, 2017.