KUALA LUMPUR, Malaysia--Abu Dhabi sovereign-wealth fund International Petroleum Investment Co. said it has now received all the funds required to be paid by 1Malaysia Development Bhd. by the end of December.
The payment is under the settlement with Malaysia's finance ministry and 1MDB and a consent award made on May. 9, IPIC said in a statement Wednesday to the London Stock Exchange, without revealing further details.
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The payment spares Malaysian Prime Minister Najib Razak's administration some embarrassment ahead of a general election due to be held within the next year. It might also alleviate some concerns about Malaysian state securities for foreign investors, who own a significant share of government bonds in the Southeast Asian nation.
1MDB said Wednesday that it would issue a statement on the payment soon, without specifying further.
The payment is the last by 1MDB to compensate its former business partner for an emergency loan and other financial support extended after the Malaysian fund--which is under investigation in half a dozen countries--was unable to service its debt obligations.
1MDB missed the first installment amounting to some $600 million due at the end of July, and was given an extension until August. It eventually paid, though not before rattling local debt markets.
Foreign ownership of Malaysian government debt securities fell by 2.3 billion ringgit, or $564 million, in July--the month that 1MDB missed the payment--as compared with a net outflow of 330 million ringgit in June, according to data from Malaysia's central bank.
The net outflow had since narrowed to 745 million ringgit in August. It turned into a net inflow of 9.3 billion in September.
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(END) Dow Jones Newswires
December 27, 2017 04:19 ET (09:19 GMT)