1MDB says has paid IPIC US$350m

1MDB said the balance is now due by the end of this month, after Finance Ministry Secretary-General Tan Sri Mohd Irwan Serigar Abdullah announced an extension earlier this week. — Picture by Yusof Mat Isa
1MDB said the balance is now due by the end of this month, after Finance Ministry Secretary-General Tan Sri Mohd Irwan Serigar Abdullah announced an extension earlier this week. — Picture by Yusof Mat Isa

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KUALA LUMPUR, Aug 11 — Strategic fund 1Malaysia Development Bhd (1MDB) announced today that it has so far paid US$350 million (RM1.5 billion) to Abu Dhabi firm International Petroleum Investment Co (IPIC).

It said the balance is now due by the end of this month, after Finance Ministry Secretary-General Tan Sri Mohd Irwan Serigar Abdullah announced an extension earlier this week.

“1MDB is pleased to announce that pursuant to the Amendment dated 8 August 2017 to the Settlement Deed with Minister of Finance (Incorporated) Malaysia and International Petroleum Investment Company PJSC (IPIC), 1MDB has now remitted, to date, the equivalent of US$350 million to IPIC,” it said in a statement.

“The balance of the original 31 July 2017 payment obligation to IPIC is accordingly now due on 31 August 2017. All funds paid to IPIC are from proceeds of the on-going rationalisation programme,” it added.

On April 24, 1MDB confirmed that it reached a deal with IPIC to settle a debt dispute worth RM5.8 billion.

1MDB has previously written to IPIC to inform the Abu Dhabi-based company that the payment, originally due on July 31, 2017, will be paid in August 2017 instead as it awaits the necessary fund.

Earlier this month, 1MDB said it is awaiting proceeds from its debt rationalisation plan to use as payment to IPIC.

Prime Minister Datuk Seri Najib Razak later denied 1MDB is unable to pay back its debt IPIC), saying the issue is now a “technical matter” and is not expected to impact investor confidence in the Malaysian economy.

*Editor's note: An earlier version stated the amount to be US$360 million. 1MDB has since clarified that they remitted US$350 million.

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