IPIC gives 1MDB extension till Aug 31 for repayment

PETALING JAYA: International Petroleum Investment Company PJSC (IPIC) has granted 1Malaysia Development Bhd (1MDB) and its guarantor, Minister of Finance (Inc) (MoF Inc), until Aug 31, 2017, to complete its payment obligations. 

However, IPIC said, the extension was subject to 1MDB making a partial payment. 

“This extension is subject to MoF Inc and 1MDB making payment of not less than US$310mil (RM1.33bil) of the full amount due on or before Aug 12, 2017,” IPIC said in a filing with the London Stock Exchange. 

On Aug 1, IPIC gave a cure period of five working days for both 1MDB and MoF Inc to settle the non-repayment, before the two parties become subject to additional obligations to IPIC and Aabar Investments PJS.

1MDB was due to make a payment to IPIC by the end of July and had  been given a cure period of five business day to remedy their non-payment. 

A total of US$602.73mil (RM2.56bil), being the first of a two-part payment, was due on July 31 under a debt-settlement agreement amounting to US$1.205bil (RM5.16bil) that was reached in April this year.

The second payment of US$602.73mil (RM2.58bil) is due at the end of this year.

* For our earlier story, click 1MDB gets extension for US$603mil payment to Abu Dhabi fund