Malaysia's 1MDB Bonds Rise After Abu Dhabi Fund Pays Interestby
Guarantor IPIC paid $52.4 million on 1MDB's 2022 securities
Bonds jump 3 cents on the dollar, biggest increase since April
1Malaysia Development Bhd. bonds rose after Abu Dhabi’s sovereign wealth fund, which guarantees some of the Malaysian fund’s notes, paid interest due Wednesday on 1MDB securities.
1MDB’s 5.99 percent dollar notes due 2022 jumped 3 cents on the dollar, set for the biggest daily move in at least three weeks, to 103.8 cents, according to prices compiled by Bloomberg. The jump came after Abu Dhabi’s International Petroleum Investment Co., which guaranteed the $1.75 billion dollar-denominated bond in 2012, made a $52.4 million payment on the securities, according to a stock exchange filing in London. The notes had dropped to a two-week low of 100.8 cents on Tuesday.
1MDB had failed to make a $50 million coupon payment last month on separate privately placed notes amid a dispute with IPIC, which co-guaranteed the securities. The two funds have been locked in a dispute over 1MDB’s debt obligations to IPIC under an agreement reached in May last year.