Malaysia’s 1MDB says $350m paid to Abu Dhabi for debt deal

State fund 1Malaysia Development Berhad (1MDB) on Friday said it had remitted the equivalent of $350 million to Abu Dhabi’s government-owned International Petroleum Investment Co (IPIC).

Earlier this week, Abu Dhabi once again extended a deadline for troubled Malaysian fund 1MDB, the subject of allegations of fraud and money-laundering, to make a $603 million debt payment, provided at least $310 million was paid by Aug. 12. The rest of the money plus interest would be payable by Aug. 31.

“All funds paid to IPIC are from proceeds of the ongoing rationalisation programme,” 1MDB said in a statement, referring to the reallocation and sale of the funds’ assets undertaken over the last two years.

An IPIC spokesman confirmed the payment had been received, but did not elaborate.

1MDB had originally agreed to pay $1.2 billion in two installments to IPIC, with the first of about $600 million due by July 31. The fund did not honour that commitment and IPIC then gave it a grace period that ended on Tuesday, a deadline that was also missed by 1MDB.