1MDB makes payment to IPIC

Pic Reuters

Pic ReutersKUALA LUMPUR

International Petroleum Investment Company PJSC (IPIC) confirmed that it has received payment from 1Malaysia Development Bhd (1MDB).

1MDB agreed in April to pay Abu Dhabi's sovereign wealth fund, International Petroleum Investment Company (IPIC), about US$1.2 billion with half due at the end of July and the rest by the end of the year.

In a statement issued today, 1MDB said it had remitted the amount in pursuant to the Amendment dated August 8, 2017, to the Settlement Deed with Ministry of Finance (Incorporated) Malaysia and the Abu Dhabi based IPIC.

"The balance of the original July 31, 2017 payment obligation to IPIC is accordingly now due on Aug 31, 2017", 1MDB said.

The second payment of US$602.73mil is due at the end of this year.

In an Aug 8 statement on the LSE, IPIC said it granted an extension subject to MoF Inc and 1MDB making part payment of not less than US$310mil due by Aug 12, 2017.

In a declaration included in Justice Department's latest filings, a Federal Bureau of Investigation (FBI) agent warned that information in the civil cases may reveal "potential targets and subjects of the investigation and the investigative techniques that have been and will be used in the investigation", Bloomberg reported.

"IPIC received US$350 million instead of US$310 million and got it early, " the report quoted a banker source as saying.

MR LIM KIT SIANG, Malaysian opposition leader, on whether the extra funds paid by 1MDB to IPIC were an interest payment.

In its civil lawsuits filed previously, the department sought to seize a total of about US$1.7 billion in assets that it said were bought with misappropriated 1MDB funds.

Missed payments by 1MDB are a concern for foreign investors, who own a significant share of government bonds in the South-east Asian nation.

1MDB was started by Prime Minister Najib Razak in 2009 soon after he became Malaysia's leader.

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