IPIC GMTN Limited Interest Payments in Relation to Guaranteed Notes (1844W)
25 April 2016 - 5:51PM
UK Regulatory
TIDM61HK
RNS Number : 1844W
IPIC GMTN Limited
25 April 2016
Upcoming Interest Payments under certain 1MDB Notes
-- IPIC will make the U.S.$ 50,312,500.00 interest payment to
holders of the Notes issued by 1MDB Energy (Langat) Limited and
guaranteed by 1MDB, but only after 1MDB defaults on its payment
obligations in respect of such Notes
-- A 1MDB default does not cross-default IPIC
On 10 June 2015, IPIC GMTN Limited issued an announcement (RNS
Number 7064P) relating to a binding term sheet dated 28 May 2015
(the Binding Term Sheet) and other ancillary documents entered into
between International Petroleum Investment Company PJSC (IPIC),
Aabar Investments PJS (Aabar), Minister of Finance, Inc., Malaysia
(MoF) and 1Malaysia Development Berhad (1MDB). Amongst other
things, the Binding Term Sheet provided for IPIC assuming the
obligations to pay (on an interim basis) interest due under two
IPIC guaranteed 1MDB financings amounting to U.S.$3.5 billion in
aggregate principal amount, including U.S.$1,750,000,000 fixed rate
5.75 per cent. notes due 2022 issued by 1MDB Energy (Langat)
Limited and guaranteed by 1MDB (the Notes).
IPIC's guarantee of the Notes (the Guarantee) provides that
IPIC's payment obligations in respect of the Notes are subject to
certain conditions, including the occurrence of a 1MDB Event. 1MDB
Events, in turn, include a default by 1MDB for more than five
business days in the payment on the due date of interest or
principal payable in respect of the Notes (1MDB Default). The
Guarantee also prescribes the number of days following such 1MDB
Default within which IPIC must fulfil its payment obligations in
respect of the Notes. A 1MDB Default does not cross-default
IPIC.
In respect of the Notes, IPIC notes that an interest payment of
U.S$ 50,312,500.00 was due on 18 April 2016. IPIC understands that
neither 1MDB Energy (Langat) Limited nor 1MDB have made this
payment. Should 1MDB Energy (Langat) Limited and 1MDB fail to make
such payment on or before 25 April 2016, a 1MDB Default shall
occur.
As at the time of this announcement, IPIC is not aware of the
Guarantee being called upon. IPIC has always honoured its
obligations arising from any agreements it has entered in to and
will continue to do so. Accordingly, if a 1MDB Default occurs and
IPIC is called upon in accordance with the procedure prescribed in
the Guarantee, IPIC will honour its obligations in relation to this
interest payment, which shall be met out of IPIC's existing
liquidity.
IPIC notes that the status of the Binding Term Sheet continues
to be as disclosed in the announcement issued by IPIC GMTN Limited
on 18 April 2016 (RNS Number 4672V). 1MDB and MoF are in default
pursuant to the terms of the Binding Term Sheet and IPIC's and
Aabar's obligations under the Binding Term Sheet have terminated.
Any payment in respect of the Notes would be made by IPIC in
respect of its obligations under the Guarantee and not in any
capacity under the terms of the Binding Term Sheet. IPIC notes that
it is entitled to the benefit of indemnities from 1MDB and MoF in
respect of all amounts that it may be required to pay in respect of
the Notes and the Guarantee under the terms of the Binding Term
Sheet and these indemnities survive the termination of the Binding
Term Sheet.
IPIC reserves all its rights under the above documents and in
respect of the various options for settlement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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