KUALA LUMPUR (April 18): 1Malaysia Development Bhd (1MDB) said its entities will meet all of its other obligations under any financing arrangements, adding that the fund has ample liquidity to do so.

The strategic investment fund said this in a statement after International Petroleum Investment Company (IPIC) announced to the London Stock Exchange earlier today that the UAE's sovereign fund had performed all of its obligations under the binding term sheet with 1MDB; however, 1MDB and Minister of Finance (Inc) (MoF Inc) failed to perform certain payments and other obligations to IPIC.

IPIC said the payments included the obligation by 1MDB to pay US$1.1 million plus interest accruing, under the terms of the binding term sheet, adding that 1MDB and MoF Inc continue to be bound by the terms.

In the third statement that 1MDB issued today, the investment fund said IPIC has not paid the semi-annual interest on the US$1.75 billion (RM6.87 billion) bond that has coupon rate of 5.75% due 2022. The debt papers were issued by 1MDB Energy (Langat) Ltd.

"On June 4, 2015, IPIC assumed the issuer's obligation to pay the interest due under the notes in exchange for certain undertakings to transfer assets and cash to IPIC," 1MDB said in the statement.

1MDB added that a dispute had recently arisen between IPIC and the issuer concerning their obligations to each other.

"Consequently, as of the time of this statement, the issuer understands IPIC has not paid the interest," said 1MDB.