1MDB: Second tranche fully paid to IPIC

PETALING JAYA: 1Malaysia Development Berhad (1MDB) said it has remitted in full the second tranche due on Aug 31 to International Petroleum Investment Company PJSC (IPIC).

"1Malaysia Development Berhad (1MDB)  is pleased to announce that pursuant to the Amendment dated 8 August 2017 to the Settlement Deed with Ministry of Finance Inc Malaysia and International Petroleum Investment Company PJSC (IPIC), 1MDB has remitted to IPIC in full the second tranche due on 31 August 2017.

"All funds were paid from proceeds of the ongoing rationalisation programme," 1MDB said in a statement on Wednesday.

1MDB has already remitted the equivalent of US$350mil to IPIC as part payment of a settlement that was due on July 31, 2017.

The balance of the payment obligation to IPIC is now due on Aug 31, 2017, 1MDB said in a statement earlier.

IPIC in turn acknowledged receipt of the earlier payment in a statement posted on the London Stock Exchange (LSE).

The Abu Dhabi state-owned fund said: “IPIC has now received the funds required by Aug 12, 2017 for the extension agreed with Minister of Finance (Inc) Malaysia (MoF Inc) and 1MDB to be effective.

“Accordingly, MoF Inc and 1MDB now have until Aug 31, 2017 to complete the performance of the payment obligations that were initially due to be performed by July 31, 2017 under the settlement and the consent award and to pay default interest on the delayed payment.”

In an Aug 8 statement on the LSE, IPIC said it had granted an extension subject to MoF Inc and 1MDB making part payment of not less than US$310mil due by Aug 12, 2017.

Earlier, on Aug 1, IPIC informed the exchange that it “has not received payments of US$602.725mil and US$26.025mil that was due to be paid,” being the first of a two-part payment due on July 31 under a debt-settlement agreement amounting to US$1.205bil that was reached in April this year.

The second payment of US$602.73mil is due at the end of this year.