Malaysia reached an agreement to pay Abu Dhabi about $1.2 billion as settlement over the debt of embattled government fund 1Malaysia Development Bhd.
Malaysia will give Abu Dhabi half the amount by the end of July and the rest by the end of this year, according to a statement on the London Stock Exchange on Monday by Abu Dhabi sovereign wealth fund International Petroleum Investment Co.
Malaysia will also assume the coupon and principal obligations for two dollar bonds issued by 1MDB and co-guaranteed by IPIC, according to the statement.
1MDB and IPIC were locked in a tussle that spilled over to repayments on two sets of bonds issued by the Malaysian state fund that led to a default in April 2016.
IPIC was seeking $6.5 billion from 1MDB and the Malaysian government for failure to perform their debt obligations as the dispute moved into arbitration. Among the issues between the two were billions in allegedly missing funds.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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