1MDB pays interest on Islamic debt notes

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Company has ample liquidity and will honour all debt obligations

KUALA LUMPUR — May 30, 2016: 1Malaysia Development Berhad (1MDB) today made a scheduled coupon payment of RM143.75 million on its RM5 billion 5.75 per cent Islamic Medium Term Notes (IMTNs) due in 2039.

“1MDB has ample liquidity to make interest payments and service its current debt obligations. The strong progress achieved on the rationalisation plan further supports 1MDB’s stable financial position,” President and Group
Executive Director Arul Kanda said in a statement.

The payment comes after 1MDB stated that it was in dispute with International Petroleum Investment Company (IPIC) over interest payments due on the US$1.75 billion fixed rate 5.75 per cent notes, due 2022, that were issued
by 1MDB (Langat) Ltd. and the US$1.75 billion fixed rate 5.99 per cent notes, due 2022, that were issued by 1MDB Energy Ltd.

Arul said that notwithstanding the dispute with IPIC, 1MDB would continue to honour current debt obligations.

“1MDB remains focused on resolving the dispute with IPIC, and is committed to a continued process of dialogue and working toward a solution that is in the best interest of all stakeholders.” — Bernama



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