1MDB says some of its bonds are in default after missed payment

[HONG KONG] State investors 1Malaysia Development Bhd (1MDB) said on Tuesday it has not made a US$50.3 million interest payment on its bonds due 2022 following a stand-off with Abu Dhabi sovereign fund IPIC, but said it will meet all its other liabilities.

1MDB said the missed interest payment had caused a cross default on its RM5 billion (S$1.72 billion) sukuk due 2039 and the RM2.4 billion sukuk due between 2021 and 2024.

The two state investors are locked in a dispute over the interest payment on a US$1.75 billion bond which was due earlier this month.

REUTERS