1Malaysia Development Berhad (1MDB) today announced paying an equivalent of US$350 million (RM1.545 billion) to the International Petroleum Investment Co (IPIC) yesterday with proceeds from its rationalisation plan, confirming The Malaysian Insight’s report earlier today. 

The payment came after it missed the original July 31 deadline to pay the first tranche of US$605 million to the Abu Dhabi sovereign fund as settlement of a US$1.2 billion debt.

“1MDB is pleased to announce that pursuant to the amendment dated  August 8, 2017, to the settlement deed with Minister of Finance (Incorporated) Malaysia and IPIC, 1MDB has now remitted. To date. The equivalent of US$350 million to IPIC.

“The balance of the original July 31, 2017, payment obligation to IPIC is accordingly now due on August 31, 2017,” said a statement issued by 1MDB.

Treasury secretary-general and 1MDB chairman Irwan Siregar Abdullah revealed on Tuesday that IPIC had extended the deadline to end of August if 1MDB could pay US$310 million by August 12.

Prime Minister Najib Razak blamed 1MDB’s failure to pay Abu Dhabi’s sovereign wealth fund the US$605 million due on July 31 on “technical” issues, saying it was not because 1MDB had no money.

“Regarding 1MDB (and its failure to repay IPIC), we have released a statement that it was due merely to a technical issue, and not because we are not able to pay back,” Najib told Parliament on August 2.

IPIC subsequently gave 1MDB five days to make payment or become subject to additional obligations. – August 11, 2017.