1Malaysia Development Berhad, or 1MDB, paid the coupon on its Islamic debt, carrying out the scheduled payment of RM143.8 million ($34.9 million) on its RM5 billion 5.75 per cent notes due 2039, it said in a statement yesterday.

The company previously missed the coupons for two sets of dollar-denominated bonds amid a dispute with Abu Dhabi’s International Petroleum Investment Co, which had guaranteed the debt. That led to a default by 1MDB in April. The default came on top of claims of corruption and bribery at 1MDB - which it strenuously denies - leading to investigations in Singapore, Luxembourg and Switzerland.

More than a week ago, the Monetary Authority of Singapore moved to revoke a merchant banking licence of BSI Bank in the city state because of gross misconduct and anti-money laundering violations. The bank is part of Switzerland-headquartered BSI, now being acquired by EFG International. (To view the story of Singapore's actions against BSI Bank, see here.)

“1MDB has ample liquidity to make interest payments and service its current debt obligations. The strong progress achieved on the rationalisation plan further supports 1MDB’s stable financial position," said Arul Kanda, president and group executive director, 1MDB.

The payment comes after 1MDB revealed it was in dispute with International Petroleum Investment Company over interest payments due on the $1.75 billion fixed rate 5.75 per cent notes due 2022 that were issued by 1MDB (Langat) Limited, and the $1.75 billion fixed rate 5.99 per cent notes due 2022 that were issued by 1MDB Energy Limited.