KUALA LUMPUR (REUTERS) - Malaysia's state fund 1Malaysia Development (1MDB) has signed a deal securing US$1 billion (S$1.3 billion) in funding from Abu Dhabi's International Petroleum Investment Company (IPIC) and its Aabar Investments unit ahead of a June 4 deadline to repay a loan to an international bank syndicate.
Malaysia's finance ministry said in a statement on Friday that the amount will be used to repay a US$975 million loan to the syndicate in advance of the due date. Securing the funds marks a major milestone in plans to restructure loss-making 1MDB.
"This agreement marks a significant step towards reducing 1MDB's overall debt levels, and is a crucial part of the rationalisation plan I presented to cabinet earlier (Friday),"deputy finance minister Ahmad Husni Hanadzlah said in a statement.
The government official said the ministry expects plans to restructure 1MDB to be implemented "in full by early next year".