April 24, 2017 / 9:49 AM / 4 months ago

Malaysia's 1MDB reaches settlement deal with Abu Dhabi's IPIC

FILE PHOTO: Workmen are pictured on site at the 1 Malaysia Development Berhad (1MDB) flagship Tun Razak Exchange development in Kuala Lumpur, Malaysia, March 1, 2015.Olivia Harris/File Photo

KUALA LUMPUR (Reuters) - Malaysia's state fund 1Malaysia Development Berhad (1MDB) said on Monday it had reached an agreement with Abu Dhabi state fund IPIC on the settlement of arbitration proceedings at the London Court of International Arbitration.

The statement followed an announcement by International Petroleum Investment Co (IPIC) on the London Stock Exchange confirming a debt deal had been reached.

Under the settlement, 1MDB will make certain payments to IPIC and will assume responsibility for all future interest and principal payments for two bonds issued by 1MDB Group companies due in 2022, the Malaysian fund said in the statement.

1MDB said obligations will be met primarily via monetisation of 1MDB-owned investment fund units. It said a first tranche monetisation of about $50 million had been received, in cash.

    Last year IPIC had asked a London court to arbitrate in a dispute with 1MDB, in which IPIC claimed about $6.5 billion.

Reporting by Praveen Menon; Editing by Clarence Fernandez

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