KUALA LUMPUR, April 18 — The Ministry of Finance said today it has been made aware of 1Malaysia Development Berhad (1MDB)’s dispute with Abu Dhabi’s International Petroleum Investment Company (IPIC), and has pledged to honour all of its outstanding financial obligations.

In a statement, MOF said it was notified of the dispute concerning the obligations of 1MDB and IPIC in respect of certain publicly issued notes.

“The MOF wishes to make clear that it will continue to honour all of its outstanding commitments in the financial markets,” it said in a short statement this evening.

1MDB has admitted that an interest payment due to its bondholders today has not been made due to a dispute between the state investment fund and IPIC.

“A dispute has recently arisen between IPIC and the Issuer concerning, among other things, the Issuer’s obligations to IPIC and IPIC’s corresponding obligations

“Consequently, at the time of the settlement, the Issuer understands IPIC has not paid the interest,” 1MDB said in a statement earlier today.

The bond interest payments due is for US$50 million for US US$1.75 billion bonds issued by 1MDB’s energy arm 1MDB Energy (Langat) Limited.

But the firm stressed that it would be able to meet all other financial obligations.

According to Reuters, IPIC said today that a June agreement to provide financial support to 1MDB had been terminated after the firm failed to meet obligations to the Abu Dhabi fund.

IPIC said in a bourse filing in London the Malaysian state fund and the Ministry of Finance had failed to meet obligations including to pay US$1.1 billion plus interest and was now in default.

While the obligations of IPIC and its subsidiary, Aabar Investments, under the June agreement had now been terminated, the Abu Dhabi fund still expected the Malaysian side to honour its commitments.

IPIC said it was now considering all its options to remedy the default, including referring the matter to the appropriate dispute resolution forum.

Under the June agreement, IPIC agreed to provide US$1 billion in cash as well as assume US$3.5 billion of 1MDB debt.

It also forgave an undisclosed amount of debt owed to IPIC by 1MDB, in exchange for assets that have not been named.