1MDB Gets Extension for $603 Million Payment to Abu DhabiBy
Malaysian investment co. missed last month’s payment deadline
1MDB, IPIC have been in debt tussle for more than a year
Embattled state investment company 1Malaysia Development Bhd. received an extension to make a payment of more than $600 million to an Abu Dhabi sovereign wealth fund after missing a deadline last month.
1MDB and the Malaysian finance ministry must pay at least $310 million by Aug. 12, and has until the end of the month to meet the rest of the obligation, International Petroleum Investment Co. said in a London stock exchange filing.
The payment to IPIC is part of an interest-accruing $1.2 billion settlement over a debt dispute. The second installment of $603 million is due by the end of 2017.
1MDB was due to make a payment to IPIC by the end of July and had a five-business day grace period to meet the obligation. The settlement would have been made from proceeds of a 1MDB rationalization plan that involved the monetization of so-called investment fund units.
The money that was expected to arrive last month had been delayed till August, 1MDB said in a statement last week. The holdup was due to the need for additional regulatory approvals, it said.
1MDB didn’t foresee the time it would take to sell the units and meet regulatory requirements, Malaysian Treasury Secretary General Irwan Serigar Abdullah told reporters on Tuesday. Irwan is also the chairman of 1MDB’s board of directors.
1MDB’s 5.99 percent notes due 2022 rose to 108.285 to the dollar as of 6:15 p.m. in Kuala Lumpur, according to prices compiled by Bloomberg. The yield has dropped about 47 basis points in 2017.
— With assistance by Elffie Chew