1MALAYSIA Development Berhad (1MDB) has written to the International Petroleum Investment Co (IPIC), informing the Abu Dhabi-based company that the payment originally due on July 31 will be paid this month as it awaits funds that were due to be received last month.

The state investor, in a statement today, said all payments due to IPIC would be made from the proceeds of the 1MDB rationalisation plan.

“1MDB is awaiting funds that were due to be received in July. Due to the need for additional regulatory approvals, the receipt of those funds has been delayed to August.

“As these are the funds that will be used to pay IPIC, 1MDB has written to IPIC to inform them of our commitment to meet the obligations.”

It was report that the payment, amounting to US$602.7 million (RM2.6 billion), was part of a debt settlement.

Abu Dhabi’s state investor, Mubadala, said it had not received any information from banks about the US$602.7 million due from 1MDB following the expiry of the deadline. 

1MDB had, in April, reached an agreement to pay IPIC US$1.2 billion in two instalments.

As part of the agreement, 1MDB and the Finance Ministry will assume responsibility for all future interest and principal payments under two bonds, worth US$3.5 billion in total.

The agreement was reached after 1MDB defaulted on its bonds last year, sparking a dispute with IPIC, which asked a London court to arbitrate a claim totalling US$6.5 billion. – August 1, 2017.