KUALA LUMPUR (Bloomberg) - 1Malaysia Development, the sovereign investment fund that has struggled to repay loans, said it paid US$66 million (S$91.46 million) of interest on its 2023 dollar bonds on Monday.

"I can confirm that this payment was made," Mr Arul Kanda, president and group executive director said in an e-mailed statement on Tuesday.

1MDB's ability to service its debt was put in question after it delayed the settlement of a RM2 billion (S$750 million) loan by about three months. The firm, set up by the government five years ago to build infrastructure, has drawn criticism from lawmakers for its rising borrowings, which totalled RM41.9 billion as of March 2014.

1MDB, whose advisory board is headed by Prime Minister Najib Razak, announced plans to dismantle its assets in a Feb 18 statement. It won't undertake any new investments or projects, will set up standalone entities for its two major property developments and raise cash from selling its power business over the next 12 months.

The company's US$3 billion of 4.4 per cent notes due 2023 fell 1.7 cents to 83.64 cents on the dollar as of 11.13am in Hong Kong, a record low, to yield 7.12 per cent, according to prices compiled by Bloomberg. The notes were sold to investors at par, or 100 cents on the dollar, in March 2013.