World Economy

Abu Dhabi Seeks $6.5b From 1MDB

Abu Dhabi Seeks $6.5b From 1MDBAbu Dhabi Seeks $6.5b From 1MDB

Abu Dhabi’s sovereign wealth fund is seeking $6.5 billion from Malaysia’s troubled state investment vehicle 1MDB, as it moves to settle a debt dispute through international arbitration, Middle East Online reported. The fund, International Petroleum Investment Co, on Tuesday said it had submitted its request to the London Court of International Arbitration.  In April, 1MDB, or 1Malaysia Development Berhad, defaulted on $1.75 billion in company bonds after missing an interest payment of $50 million. 1MDB and Malaysian Prime Minister Najib Razak are battling allegations that billions were looted from the company in complex overseas deals that are being investigated by authorities in several countries.  IPIC has accused 1MDB of failing to pay back a $1 billion loan from the Abu Dhabi fund. IPIC’s arbitration request accuses 1MDB and Malaysia’s finance ministry—Najib is also finance minister—of failing to stick to its financial agreements with IPIC. 1MDB insists it repaid the loan but IPIC says the money instead went to a company with which it has no relations.