1MDB to reduce debt by RM16bil on completion of IPIC deal

1MDB which is facing cash flow problems to service debts of almost RM42bil, said it was publicly known that IPIC issued guarantees in 2012 for the payment of interest and principal on two US$1.75bil (RM6.6bil) bonds issued by 1MDB, totalling US$3.5bil of principal and up to US$2bil of interest.

KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) said that its debt would be reduced by RM16bil when it completes the commercial negotiations with Abu Dhabi’s International Petroleum Investment Co (IPIC).

It clarified that neither the Finance Ministry, nor the Government, has provided guarantees for the recent transaction between 1MDB and IPIC.