1MDB cites dispute as reason for not making interest payment

KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) understands that International Petroleum Investment Company (Ipic) has made an interest payment of US$52.4mil (RM211.3mil), due on Wednesday, in respect of the US$1.75bil (RM7.1bil) fixed rate 5.99% notes, due 2022, issued by 1MDB Energy Ltd (Energy Notes).

“While 1MDB has more than sufficient funds to have made the interest payment, it has not done so for the Energy Notes and for an earlier interest payment for the US$1.75bil fixed rate 5.75% notes, due 2022, issued by 1MDB Energy (Langat) Ltd (Langat Notes),” it said in a statement on Wednesday.

1MDB said this was due to the ongoing dispute between 1MDB and Ipic.

“All of 1MDB’s rights are reserved with respect to that dispute,” it said.

1MDB highlighted that it was committed to working openly with Ipic to resolve the dispute.

“1MDB recently started an engagement process for its US$ denominated bondholders and encourages all holders to register at its microsite at http://sites.dfkingltd.com/1MDB,” it advised.

The site, it said, contained all relevant information and would include regular updates for bondholders. On registration, they would be able to submit questions online through the website.

“Furthermore, a call for all US$ denominated bondholders would take place on May 23,” the statement added. - Bernama