Printer Friendly

IPIC to pay interest on $3.5b bonds issued by Malaysian firm.

Summary: According to IPIC, upon the completion of the transfer of assets, IPIC will directly assume liability for all payment obligations.

Abu Dhabi's state-owned International Petroleum Investment Company (IPIC) will pay the interest payments coming due in October and November 2015 in respect of the two $1.75 billion bonds each issued by 1MDB Energy Limited and 1MDB Energy (Langat) Limited and co-guaranteed by IPIC.

The oil and gas investment giant on Thursday updated the market regarding the binding term sheet signed between IPIC and Aabar Investments PJS (Aabar) and 1Malaysia Development Berhad (1MDB) and Ministry of Finance Malaysia (MOF Malaysia) on 28 May 2015, the total payment to be made by IPIC amounts to $102.7 million.

On 4 June 2015, IPIC provided $1 billion to 1MDB for 1MDB to utilise immediately to settle certain of its liabilities and from 4 June 2015, IPIC has assumed 1MDB's obligations to pay on an interim basis all interest due under the Notes amounting to $3.5 billion in aggregate principal amount.

According to IPIC, upon the completion of the transfer of assets, IPIC will directly assume liability for all payment obligations under the Notes and forgive certain financial obligations of the 1MDB Group to the IPIC Group.

The update by IPIC said by 30 June 2016, IPIC is to have received a transfer of assets with an aggregate value of an amount which represents the sum of the cash payment, the assumption of debt and the debt forgiveness; 1MDB and MOF Malaysia have agreed to perform the obligations contemplated in the Binding Term Sheet and to indemnify IPIC and Aabar for any non-performance, and vice versa; and the Binding Term Sheet supersedes all previous commercial transactions between the parties.

IPIC remains committed to working with 1MDB and MOF Malaysia, and will continue to provide updates when relevant.


Copyright [c] 2015 Khaleej Times. All Rights Reserved. Provided by SyndiGate Media Inc. ( ).

COPYRIGHT 2015 SyndiGate Media Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2015 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Khaleej Times (Dubai, United Arab Emirates)
Date:Oct 8, 2015
Previous Article:Shop and fly with Mashreq card at Gitex.
Next Article:Al Masah plans Dh1.1b healthcare investment.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters