INTERNATIONAL Petroleum Investment Company PJSC (IPIC) has confirmed receiving a payment of US$350 million (RM1.55 billion) from 1Malaysia Development Bhd in a filing to the London Stock Exchange.

The payment was made ahead of an extended deadline which expires tomorrow, after 1MDB 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.

“Further to the announcement on August 8, 2017, IPIC has now received 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 have until August 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 consent award and to pay default interest on the delayed payment,” IPIC said in a statement.

The Malaysian Insight reported this morning that 1MDB had paid the first tranche. 

Treasury secretary-general and 1MDB chairman Irwan Serigar Abdullah said 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$600 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.