KUALA LUMPUR, May 3 ― The Employees Provident Fund (EPF) said today is not worried about its RM200 million investment in 1Malaysia Development Bhd (1MDB) that last month defaulted on two of its bonds.

EPF chief executive Datuk Shahril Ridza Ridzuan said the retirement fund's executives have not deliberated the matter, which was prompted after 1MDB missed a US$50 bond interest payment.

“The trustees have yet to say there is a cross default... what we do next is dependent upon what the trustee tells us, so, for the moment we will wait for the trustees to get back to us,” Shahril told reporters after unveiling the fund's 2015 report here.

EPF owns RM200 million of the RM5 billion 1MDB sukuk issued for its energy assets. The Islamic bonds are due 2039.

Shahril said today even if there is a risk of a default, its investments in 1MDB's remain secured due to government guarantee on the bonds.

“So we are not worried,” he said.

1MDB defaulted when Abu Dhabi sovereign wealth fund International Petroleum Investment Company (IPIC) did not make the US$50 million interest payment following a dispute with the Malaysian firm.

1MDB and IPIC are co-guarantors for US$1.75 billion of 1MDB bonds maturing in 2022.

The missed payment caused defaults on 1MDB’s RM5 billion sukuk due 2039 and the RM2.4 billion Bandar Malaysia Sdn Bhd sukuk due between 2021 and 2024.

It may also have activated the “material adverse effect” clause in the firm’s RM800 million loan from the Social Security Organisation.

1MDB said its other bonds are not affected.

* An earlier version of the story contained an error and has since been corrected.