1MDB defaults on 5.99% notes due 2022; IPIC pays interest, ups redress to $1.2 billion

By Susanna Moon

Chicago, May 11 – International Petroleum Investment Co. PJSC, or IPIC, said it paid the interest due on the $1.75 billion 5.99% notes due 2022 issued by 1MDB Energy Ltd. and guaranteed by 1 Malaysia Development Bhd., 1MDB.

IPIC paid the $52,412,500 interest out of existing liquidity and under its obligations under the notes guarantee following the latest default by 1MDB, according to a company notice.

After this default, which is the third 1MDB default, IPIC said it will increase its written demand for 1MDB and Minister of Finance, Inc., Malaysia to fully indemnify IPIC for the guarantee payment, the interest paid on April 29 and the outstanding sum that was due to be paid to IPIC by Dec. 31.

The total amount due to IPIC from 1MDB and the Minister of Finance under the terms of the binding term sheet is $1,205,450,000 plus accrued interest, the release said.

1MDB is a strategic development company based in Kuala Lumpur, Malaysia, owned by the government of Malaysia and established to drive strategic initiatives for long-term economic development.

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