How will 1MDB fund future bond payments until 2022?

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1MDB Will Fund Future Bond Payments Through Monetisation of Investment Fund Units

1Malaysia Development Berhad (1MDB) will meet its future interest and principal payments for two bonds maturing in 2022 by monetising its holdings in investment fund units. A portion of these assets has already been converted into cash, with the initial monetisation yielding approximately US$50 million (RM225 million). These obligations are part of an out-of-court settlement reached between 1MDB and Abu Dhabi's International Petroleum Investment Company (IPIC) in April.
Monetisation of Investment Fund Units as Primary Funding Source

The strategy for fulfilling the bond obligations involves liquidating units held within investment funds owned by 1MDB. This approach is central to the settlement agreement with IPIC, where 1MDB assumes responsibility for all future payments related to the specified bonds. The Prime Minister, Datuk Seri Najib Razak, indicated that this monetisation is the primary method by which these financial commitments will be met.
Initial Cash Inflow from Asset Monetisation

As part of this funding plan, 1MDB has already successfully completed a first tranche of monetisation. This initial conversion of assets resulted in the receipt of approximately US$50 million, which was received in cash. This early inflow demonstrates the active implementation of the strategy to generate funds for the bond payments.
Bond Obligations Stemming from 1MDB-IPIC Settlement

The responsibility for these future bond payments arises directly from the out-of-court settlement between 1MDB and IPIC. This agreement, confirmed on April 24, aimed to resolve a debt dispute valued at RM5.8 billion. Under the terms, 1MDB is to cover all remaining interest and principal payments for the two bonds issued by entities within the 1MDB Group until their maturity in 2022, although IPIC remains a guarantor for these bonds.

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How will 1MDB fund future bond payments until 2022?

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