What guarantees does IPIC provide for 1MDB bonds?

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IPIC Provides Guarantees for 1MDB Bonds

International Petroleum Investment Co (IPIC) has provided guarantees for the principal and interest on two US$1.75 billion bonds issued by 1Malaysia Development Berhad (1MDB). The total principal and interest amount covered by these guarantees is approximately US$5.5 billion. This assurance from IPIC covers the full value of the debt obligations.
Bond Guarantees and Value

IPIC's commitment extends to ensuring the repayment of both the principal amounts and the accrued interest for the two specific 1MDB bonds. These bonds, each valued at US$1.75 billion, represent a significant financial commitment where IPIC acts as the guarantor. The total exposure for principal and interest amounts to roughly US$5.5 billion, underscoring the scale of IPIC's backing for 1MDB's debt.
Historical Context of IPIC's Involvement

The guarantee for these bonds is part of a broader financial arrangement between IPIC and 1MDB. Previously, IPIC had also guaranteed a US$3.5 billion bond issued by 1MDB in 2012, which was intended to finance the acquisition of power plant assets. This earlier deal also included provisions for IPIC to potentially acquire a 49 per cent stake in the power plants and receive collateral for the bond.
Auditor Confirmation of Guarantees

The existence and provision of these guarantees by IPIC have been confirmed by 1MDB's auditors, Deloitte. The auditors conducted specific and detailed inquiries into these payments before signing off on 1MDB's audited accounts. This independent verification by Deloitte lends credibility to 1MDB's assertion that IPIC's guarantees are in place for the specified bonds.

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What guarantees does IPIC provide for 1MDB bonds?

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