UPDATE 1-UAE's IPIC says would make 1MDB payment after default
(Adds details from IPIC statement)
DUBAI/KUALA LUMPUR, April 25 (Reuters) - Abu Dhabi's state-owned International Petroleum Investment Co (IPIC) said it would make a $50.3 million interest payment to holders of notes issued by Malaysian state fund 1MDB, but only after 1MDB defaults on its payments.
A default by 1MDB will occur if the troubled Malaysian sovereign fund fails to make a payment on the 1MDB Energy (Langat) Limited bond before Monday, April 25, IPIC said in a filing to the London Stock Exchange on Monday.
IPIC guarantees the bond.
The coupon on the $1.75 billion bond was due on April 18, but terms of the bond gave a five-day period of grace for the payment, which ends Monday.
The Abu Dhabi fund said neither 1MDB Energy (Langat) Limited nor 1MDB have made the payment so far. It said the guarantee has not been called upon yet.
"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," it said in the statement.
It was not clear whether a default had already occurred. 1MDB did not immediately respond to a request for comment.
IPIC said a 1MDB default would not mean a cross-default by IPIC on its own debts. Continuación...