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2. RELATED: 1MDB MAKES SECOND PAYMENT TO IPIC
3. RELATED: 1MDB: SECOND TRANCHE FULLY PAID TO IPIC
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1MDB MAKES PAYMENT TO RESTORE FAITH IN MALAYSIA STATE SECURITIES
REPORTED BY THE AUSTRALIAN
(WSJ), AUGUST 31, 2017 –
Malaysia’s troubled state-investment fund 1Malaysia Development, or 1MDB, said on Wednesday it had paid the second part of a missed instalment to Abu Dhabi’s International Petroleum Investment Company.
While 1MDB is under pressure and being wound up, the payment could alleviate some concerns about Malaysian state securities for foreign investors, who own a significant share of government bonds in Malaysia.
Allegations of fraud involving 1MDB, which is under investigation in half a dozen countries, have already spooked investors by weighing on the country’s currency.
The payment announced on Wednesday is a balance payment by 1MDB to compensate the Abu Dhabi sovereign fund — a former business partner known as IPIC — for an emergency loan and other financial support extended after 1MDB was unable to service its debt obligations.
The precise amount of the payment wasn’t disclosed either by 1MDB or IPIC, which stated earlier in a filing to the London Stock Exchange that it had been made.
IPIC said the payment fulfilled the obligations that were initially due on July 31. 1MDB missed an original deadline of July 31 and an initial five-day extension granted by IPIC to pay $US628.75 million ($792m). The Abu Dhabi fund again extended the deadline and 1MDB made a payment of $US350m on August 11, with the understanding that the balance would be paid by yesterday.
1MDB, which is wholly owned by the Malaysian finance ministry, said all funds were “paid from proceeds of the ongoing rationalisation program”, referring to an effort to reduce debt by selling assets.
The market has been watching closely to see whether 1MDB would be able to meet its payment deadline. A default would erode investor confidence towards Malaysian government securities and raise a risk of capital outflows from the country, Kuala Lumpur-based Kenanga Research said.
1MDB is due to make another payment, of about $US600m, to IPIC by the end of the year.
In July, total foreign ownership of Malaysian government debt securities fell, for the second consecutive month, by 2.3 billion ringgit ($678m), as compared with a net outflow of 300 million ringgit in June, according to data from Malaysia’s central bank.
IPIC and 1MDB signed a settlement agreement in April. The July 31 payment was the first to come due since the US Justice Department in June and Singapore’s public prosecutor in July alleged in court filings that units owned by 1MDB in an offshore investment fund were almost worthless. 1MDB had maintained they were worth about $US940m. The fund hasn’t commented on the claims.
The fund was launched by Prime Minister Najib Razak in 2009 to spur economic development but fell $US13bn in debt.
('1MDB Makes Payment to Restore Faith in Malaysia State Securities.' – The Australian, August 21. 2017)
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1MDB MAKES PAYMENTS TO RESTORE FAITH IN MALAYSIA STATE SECURITIES
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3. RELATED: 1MDB: SECOND TRANCHE FULLY PAID TO IPIC
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RELATED: 1MDB MAKES SECOND PAYMENT TO IPIC
REPORTED BY THE MALAY MAIL ONLINE
KUALA LUMPUR (BERNAMA), AUGUST 31, 2017 –
1Malaysia Development Bhd (1MDB) has remitted to International Petroleum Investment Company PJSC (IPIC) in full the second tranche due on August 31, 2017.
“The payment is pursuant to the Amendment dated August 8, 2017, to the Settlement Deed with Ministry of Finance Inc Malaysia and IPIC,” said 1MDB in a statement here, today.
All funds were paid from proceeds of the on-going rationalisation programme, it said.('1MDB Makes Second Payment to IPIC.' – The Malay Mail Online, August 31, 2017)
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1. RELATED: 1MDB MAKES PAYMENT TO RESTORE FAITH IN MALAYSIA STATE SECURITIES
2. RELATED: 1MDB MAKES SECOND PAYMENT TO IPIC
2. RELATED: 1MDB MAKES SECOND PAYMENT TO IPIC
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RELATED: 1MDB: SECOND TRANCHE FULLY PAID TO IPIC
REPORTED BY THE STAR ONLINE
PETALING JAYA, AUGUST 31, 2017 –
1Malaysia Development Berhad (1MDB) said it has remitted in full the second tranche due on August 31 to International Petroleum Investment Company PJSC (IPIC)."1Malaysia Development Berhad (1MDB) is pleased to announce that pursuant to the Amendment dated 8 August 2017 to the Settlement Deed with Ministry of Finance Inc Malaysia and International Petroleum Investment Company PJSC (IPIC), 1MDB has remitted to IPIC in full the second tranche due on 31 August 2017.
"All funds were paid from proceeds of the ongoing rationalisation programme," 1MDB said in a statement on Wednesday.
1MDB has already remitted the equivalent of US$350mil to IPIC as part payment of a settlement that was due on July 31, 2017.
The balance of the payment obligation to IPIC is now due on August 31, 2017, 1MDB said in a statement earlier.
IPIC in turn acknowledged receipt of the earlier payment in a statement posted on the London Stock Exchange (LSE).
The Abu Dhabi state-owned fund said: “IPIC has now received the funds required by August 12, 2017 for the extension agreed with Minister of Finance Incorporated Malaysia (MoF Inc) and 1MDB to be effective.
“Accordingly, MoF Inc and 1MDB now have until Aug 31, 2017 to complete the performance of the payment obligations that were initially due to be performed by July 31, 2017 under the settlement and the consent award and to pay default interest on the delayed payment.”
In an August 8 statement on the LSE, IPIC said it had granted an extension subject to MoF Inc and 1MDB making part payment of not less than US$310mil due by August 12, 2017.
Earlier, on August 1, IPIC informed the exchange that it “has not received payments of US$602.725mil and US$26.025mil that was due to be paid,” being the first of a two-part payment due on July 31 under a debt-settlement agreement amounting to US$1.205bil that was reached in April this year.
The second payment of US$602.73mil is due at the end of this year.('1MDB: Second Tranche Fully Paid to IPIC.' – August 31, 2017)
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The NINE QUESTIONS Blog will return with more facts.
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