An official familiar with the negotiations conceded that the agreement with IPIC was conditional upon the Ministry of Finance (MoF) stepping in as a guarantor of the two bonds totalling US$3.5 billion ($4.9 billion). This effectively eases IPIC’s concern that it would be called upon again to fulfil its obligations as a co-guarantor of the two bonds issued with the help of Goldman Sachs in 2012.
This article appears in Issue 1160 (week of May 1) of The Edge Malaysia which is out this week
(May 1): Last Monday, 1Malaysia Development Bhd (1MDB) announced that it had reached a settlement with Abu Dhabi’s International Petroleum Investment Company PJSC (IPIC) over the arbitration proceedings at the London Court of International Arbitration. Unfortunately, this may not be something to celebrate despite the spin that it was a success for Malaysia as the arbitration initiated by IPIC is no longer needed.
