IPIC pays interest on 1MDB's bonds after another default

Kuala Lumpur

ABU Dhabi's International Petroleum Investment (IPIC) has paid the interest on 1Malaysia Development Bhd's bonds after it said the latter had defaulted on another coupon payment. IPIC made the US$52.4 million (S$71.7 million) payment on 1MDB's 5.99 per cent dollar notes due 2022, according to a stock exchange filing in London.

It had guaranteed the US$1.75 billion bonds in 2012. The Abu Dhabi company met the coupon obligation on separate privately-placed 1MDB notes last month after the Malaysian state investment fund missed the payment of US$50 million.