KUALA LUMPUR • Malaysia's troubled state investment company 1Malaysia Development Ber- had (1MDB) paid the coupon on its Islamic debt after missing two payments on other securities earlier.
1MDB undertook the scheduled payment of RM143.8 million (S$48 million) on its RM5 billion 5.75 per cent notes due in 2039, according to an e-mailed statement.
The firm had previously missed the coupons for two sets of dollar-denominated bonds amid a dispute with Abu Dhabi's International Petroleum Investment Co (IPIC), which had guaranteed the debt.
That led to a default by 1MDB last month, 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 yesterday. "1MDB reiterates that, notwithstanding the dispute with IPIC, it will continue to honour current debt obligations."
The payment was expected, as 1MDB has been clear it would pay obligations on notes guaranteed by itself and the government rather than by IPIC, according to S&P Global Ratings analyst YeeFarn Phua.
1MDB's separate US$1.75 billion (S$2.4 billion) of 5.99 per cent notes due in 2022, which are guaranteed by IPIC, rose 0.1 US cent to US$1.037 as of 4.39pm in Hong Kong.