1MDB completes payment to Abu Dhabi's IPIC

PETALING JAYA: State-owned strategic investment fund 1Malaysia Development Bhd (1MDB) has made the remaining payment due by year-end to Abu Dhabi’s International Petroleum Investment Co PJSC (IPIC) under a settlement agreement between IPIC and Minister of Finance (Incorporated) Malaysia (MoF Inc) and 1MDB.
“Further to the announcement of Aug 30, 2017, IPIC has now received all the funds required to be paid to IPIC by Dec 31, 2017 under the settlement with MoF Inc and 1MDB and the consent award made on May 9, 2017,” IPIC said in a filing with the London Stock Exchange today.
IPIC did not mention the amount paid by 1MDB, but it was reported that the last payment is US$602.73 million (RM2.46 billion), which is the final tranche of its US$1.2 billion (RM4.9 billion) debt owed to the Abu Dhabi state fund.
1MDB previously made a payment due by the end of August 2017 to IPIC, albeit a delay as it was unable to receive proceeds from its rationalisation plan on time.
Meanwhile, 1MDB also issued a statement today, saying all funds were paid from proceeds of the on-going rationalisation programme.
“1MDB is pleased to announce that pursuant to the Settlement Deed with MoF Inc Malaysia and IPIC, 1MDB has remitted to IPIC, in full, all the funds required to be paid to IPIC by Dec 31, 2017,” it noted.
1MDB’s rationalisation plan involves, among others, a “debt for asset swap” with IPIC, the sale of Edra Global Energy Bhd to China General Nuclear Power Corp for RM9.83 billion, master-planned land development in Tun Razak Exchange and disposal of non-core assets.
The Bandar Malaysia deal with Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corp (M) Sdn Bhd was aborted early this year.