Abu Dhabi’s state-owned International Petroleum Investment Co (IPIC) said today that it had paid interest of US$52.4 million due on bonds guaranteed by troubled Malaysian state fund 1MDB, after 1MDB defaulted on them.

IPIC said this marked a third default by 1MDB. The Abu Dhabi company said it would step up its demands for 1MDB and the Malaysian government to compensate IPIC for its exposure to 1MDB; it said it was now owed US$1.2 billion plus accrued interest.

1MDB has been disputing its obligations to IPIC under a debt restructuring agreement involving the companies last June.

- Reuters