1MDB is currently the subject of money laundering probes in at least six countries including the US, Singapore, Switzerland and, most recently, Australia.

Malaysia has agreed to pay Abu Dhabi $1.2 billion by December 2017 after reaching a settlement over 1MDB’s debt with Abu Dhabi sovereign wealth fund International Petroleum Investment Company (IPIC).

1MDB is currently the subject of money laundering probes in at least six countries including the US, Singapore, Switzerland and, most recently, Australia. Authorities allege that Malaysian officials and their associates have siphoned off billions of dollars from the fund.

The settlement with IPIC is the start of fixing the irregularities, and according to statement made by the London Stock Exchange, the Abu Dhabi fund will receive two instalments of just over $600 billion in July 2017 and December 2017.

The statement also added that 1MDB and the Ministry of Finance Malaysia will assume responsibility of the $3.5 billion worth of bonds that 1MDB issued to IPIC. 

It also said “the parties have also agreed to enter into good faith discussions in relation to payments made by 1MDB Group to certain entities”.