UAE sovereign wealth fund pulls support for 1MDB

It says 1MDB is in default of its debt obligations, including the payment of US$1.1b plus interest

Published Mon, Apr 18, 2016 · 09:50 PM

Kuala Lumpur

THE United Arab Emirates' International Petroleum Investment Company (IPIC) said it had terminated an agreement to provide financial support to 1MDB following the latter's failure to meet its debt obligations, including the payment of US$1.1 billion plus interest, which it said was now in default.

The announcement, in a filing with the London Stock Exchange on Monday, underlined the souring of ties between the two sovereign wealth funds. It also comes amid news reports warning of a non-payment on a US$50 million bond instalment due on Monday on papers issued by 1MDB which could potentially hurt Malaysia's bond and currency markets, and also trigger cross defaults in other debt papers issued by 1MDB.