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IPIC assumes interest, principal on 5.75%, 5.99% notes sold by 1MDB
By Susanna Moon
Chicago, April 24 – International Petroleum Investment Co. PJSC, or IPIC, said it will assume responsibility for payments on the $1.75 billion 5.75% notes due 2022 issued by 1MDB Energy (Langat) Ltd. and $1.75 billion 5.99% notes due 2022 issued by 1MDB Energy Ltd.
The notes are guaranteed by 1 Malaysia Development Bhd. and IPIC, and payments include interest and principal, according to the company notice.
Separately, the company reached an agreement for a settlement with Aabar Investments PJS, the Minister of Finance (Inc.) Malaysia and 1Malaysia Development Bhd.
Under the settlement terms, IPIC will receive $602,725,000 by July 31 and another $602,725,000 by Dec. 31.
The settlement is for the arbitration proceedings at the London Court of International Arbitration, contingent on the arbitration tribunal making a consent award by May 31, the company noted.
IPIC said about a year ago on May 11 that it had paid the $52,412,500 interest due on the 5.99% notes out of existing liquidity and under its obligations under the notes guarantee following the latest default by 1MDB.
After that default, which was the third, IPIC said it would 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 was $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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