Malaysia's 1MDB says to delay payment to Abu Dhabi's state fund

Malaysia's 1MDB says to delay payment to Abu Dhabi's state fund

1Malaysia Development Berhad, or 1MDB, faces allegations that billions were pilfered from it by
Logo of 1Malaysia Development Berhad (1MDB) is seen on a building in Kuala Lumpur, Malaysia. (Photo: AFP/Manan Vatsyayana)

KUALA LUMPUR: Malaysia's 1Malaysia Development Berhad (1MDB), which missed a deadline to pay about US$600 million to Abu Dhabi state fund International Petroleum Investment Co (IPIC), said on Tuesday (Aug 1) it will make the payment this month.

1MDB has written to IPIC to inform it that the payment, originally due on Jul 31, will now be met in August, the Malaysian fund said in a statement, adding that is is awaiting funds from the 1MDB rationalisation plan.

“1MDB itself is awaiting funds that were due to be received in July 2017," it said. "Due to the need for additional regulatory approvals, the receipt of those funds has been delayed to August 2017.

“As these are the funds which will be used to pay IPIC, 1MDB has written to IPIC to inform them of our commitment to meet the obligations in August 2017.”

Confusion about the payment grew after Malaysia's Edge newspaper reported, citing unnamed sources, that 1MDB had missed the payment, which was part of its settlement deal over a bond dispute. 

The Malaysian state fund had reached an agreement in April to pay IPIC US$1.2 billion in two installments. 1MDB had said payments will be made to IPIC by monetizing investment fund units.

Source: Agencies/ek