1MDB has to pay IPIC at least US$310m by Saturday

PETALING JAYA: 1Malaysia Development Bhd has to pay at least US$310 million (RM1.3 billion) to Abu Dhabi’s International Petroleum Investment Company (IPIC) by Saturday, and has until Aug 31, 2017 to pay the balance of US$292.73 million.

IPIC said in a filing with the London Stock Exchange that it had granted the Minister of Finance (Incorporated) Malaysia (MoF Inc) and 1MDB until Aug 31 to complete the payment obligations that were due by July 31.

“This extension is subject to MoF Inc and 1MDB making payment of not less than US$310 million of the full amount due on or before August 12, 2017,” it said.

The payment is part of a US$602.73 million bond payment and US$26.02 million due under a consent award and settlement to IPIC from MoF Inc and 1MDB. Another tranche of RM2.6 billion is due by the end of this year.

Meanwhile, Bernama reported that 1MDB chairman and Finance Ministry Secretary-General Tan Sri Dr Mohd Irwan Serigar Abdullah said 1MDB would sign another agreement for the extension of time for payment to IPIC.

He was speaking to reporters after the launch of the Home Price Checking System for Civil Servants yesterday.

Irwan explained that payment was delayed because the sale of units involved some regulatory requirements.

“We need to comply with all these. It will take time which we didn’t foresee. So all this thing will be settled,” he was quoted as saying.

Last week, 1MDB said it would make the payment by this month upon receipt of proceeds from its rationalisation plan.

1MDB’s rationalisation plan involves, among others, a “debt for asset swap” with IPIC, sale of Edra Global Energy Bhd to China General Nuclear Power Corp for RM9.83 billion, masterplanned land development in Tun Razak Exchange and disposal of noncore assets.