1MDB Gets Breathing Space as Abu Dhabi Fund Pays Bond Interest
- Malaysia state fund 1MDB defaulted on separate debt last month
- Default had added to financial scandals surrounding 1MDB
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1Malaysia Development Bhd., the troubled state-owned investment company whose advisory board has been headed by Prime Minister Najib Razak, has gotten a bit of breathing space.
Abu Dhabi’s International Petroleum Investment Co. paid $52.4 million of interest due Wednesday on 1MDB’s 5.99 percent bonds that it guarantees, according to a filing to the London Stock Exchange. The development offers 1MDB respite after a dispute with IPIC resulted in the Malaysian fund defaulting on a separate note last month. While IPIC said Wednesday it made the payment after 1MDB defaulted again, this time it did so on the due date unlike in April. 1MDB’s bonds surged.