IPIC's announcement to the London Stock Exchange is clear. MOF Inc, in other words, the Government of Malaysia, failed to make a payment of USD 602 Million, which fell due for payment on 31 July 2017.
The Government of Malaysia has attempted to place blame for default entirely on its wholly-owned company , 1MDB, but that is a lie. MOF Inc and 1MDB are both jointly liable for the amounts owed IPIC.
However , that is not the worst of it. The most worrying part of all this is the fact that Petronas's cash resources ( about USD 30 Billion at last count) could not be relied on to escape this bullet, which is likely to result in higher interest costs for all borrowers in the country.
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RNS Number : 7196M
IPIC GMTN Limited
01 August 2017
International Petroleum Investment Company PJSC - Update on Settlement with 1MDB and MOF
Following the announcement on 24 April 2017 (RNS Number 1128D) of the settlement reached between International Petroleum Investment Company PJSC (IPIC), Aabar Investments PJS (Aabar), the Minister of Finance (Incorporated) Malaysia (MoF Inc.) and 1Malaysia Development Berhad (1MDB) in respect of the arbitration proceedings commenced by IPIC and Aabar at the London Court of International Arbitration (the Settlement), and the announcement on 11 May 2017 (RNS Number 8298E) of the consent award in respect of the Settlement (the Consent Award), IPIC has not received the payments of US$602,725,000 and US$26,024,509.59 that were due to be paid under the Consent Award and the Settlement by MoF Inc. and 1MDB by 31 July 2017. Under the Settlement, there is a five business day cure period for MOF Inc. and 1MDB to remedy their non-payment before MOF Inc. and 1MDB become subject to additional obligations to IPIC and Aabar.
For further information, please contact:
International Petroleum Investment Company PJSC
P.O. Box 45005, Abu Dhabi, United Arab Emirates
Telephone: +971 2 413 0000
Fax: +971 2 413 0001
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