Malaysia's 1MDB paid interest due in fourth quarter on IPIC-guaranteed bonds: minister

KUALA LUMPUR (Dec 21): Malaysian state fund 1Malaysia Development Bhd has made interest payments on one of its bond issues this quarter, after failing to pay earlier this year because of a dispute with a guarantor, Malaysia's second finance minister said on Wednesday.

Abu Dhabi state investment fund International Petroleum Investment Co (IPIC) is seeking about US$6.5 billion ($9.4 billion) from 1MDB and its sole shareholder, the Malaysian finance ministry, alleging that the Malaysian fund defaulted on a 2015 debt restructuring agreement between the companies.

Citing the dispute, 1MDB refused to make the interest payments due earlier this year on two bonds that IPIC had guaranteed as part of the restructuring deal. IPIC then stepped in to make those payments.

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