Abu Dhabi’s IPIC to make interest payments on $3.5bn 1MDB debt

Abu Dhabi’s International Petroleum Investment Co. (IPIC) said on Thursday it would make interest payments due in October and November on two bonds worth $1.75bn each belonging to units of Malaysia’s state fund 1MDB.

IPIC also said that 1MDB and Malaysia’s finance ministry had promised to indemnify both it and its majority-owned unit Aabar Investments for any non-performance relating to a binding agreement signed in June, without elaborating.

Under that June deal, Abu Dhabi state-owned fund IPIC said it would provide a raft of support including assuming debt belonging to 1MDB and giving around $1bn in cash to help the Malaysian fund settle other debts.

The interest payments which IPIC said on Thursday it would be paying are on bonds belonging to 1MDB Energy Limited And 1MDB Energy (Langat) Limited.