1MDB pays IPIC US$350 million a day before deadline

State investment fund says all funds paid to IPIC are from the proceeds of the ongoing rationalisation programme.

(FMT) – State investment fund 1MDB says it has paid the International Petroleum Investment Company (IPIC) US$350 million, three days after the Abu Dhabi state fund gave it until Aug 31 to make a US$603 million debt settlement payment.

“The balance of the original July 31, 2017 payment obligation to IPIC is accordingly now due on Aug 31, 2017,” it said in a statement today.

It added that all funds paid to IPIC are from the proceeds of the ongoing rationalisation programme.

Under an agreement struck in April with IPIC, 1MDB agreed to pay US$1.2 billion in two instalments, with the first of about US$600 million to be paid by July 31.

But 1MDB failed to honour its commitment, forcing Abu Dhabi’s sovereign wealth fund to give 1MDB a grace period of five days to make the payment.

On Aug 8, IPIC extended the deadline to Aug 31, provided at least US$310 million was paid by Aug 12.