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1MDB pays coupon for debt after missing two interest payments

27_04_2016 - FILES-MALAYSIA-UAE-CORRUPTION-1MDB-BONDS-DEBT.jpg
Malaysia's troubled state investment company 1Malaysia Development Bhd paid the coupon on its Islamic debt after missing two payments on other securities earlier.

[KUALA LUMPUR] Malaysia's troubled state investment company 1Malaysia Development Bhd paid the coupon on its Islamic debt after missing two payments on other securities earlier.

1MDB undertook the scheduled payment of 143.8 million ringgit (S$48.2 million) on its 5 billion ringgit 5.75 per cent notes due 2039, according to an e-mailed statement.

The company had previously missed the coupons for two sets of dollar-denominated bonds amid a dispute with Abu Dhabi's International Petroleum Investment Co, which had guaranteed the debt. That led to a default by 1MDB in April, adding to the financial scandals for the company that is already a target of global investigations into allegations of money laundering and embezzlement. 1MDB has consistently denied wrongdoing.

"1MDB has ample liquidity to make interest payments and service its current debt obligations," President Arul Kanda said on Monday. "1MDB reiterates that, notwithstanding the dispute with IPIC, it will continue to honor current debt obligations."

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