Malaysian telco Axiata Group Bhd said on Wednesday its unit Celcom Axiata Bhd has priced its 5 billion ringgit ($1.61 billion) sukuk, or Islamic bonds, in nominal value.
The fund raising, with tenures ranging from three to 10 years, marks Axiata’s second Islamic debt programme established this year.
It obtained the regulatory approval to issue $1.5 billon worth of Islamic bonds to fund general corporate needs in July.
“Both programmes are in line with Axiata’s on-going group-wide initiative to optimise its balance sheet and improve its financial flexibility,” Axiata’s president and group chief executive officer Jamaludin Ibrahim said in a statement.
Proceeds from the bonds will be used to refinance Celcom Axiata’s unit Celcom Transmission (M) Sdn Bhd’s existing debt and finance the company’s capital expenditure as well as working capital requirements.
“The successful refinancing is part of Axiata’s active capital management efforts, and is estimated to save over 350 million ringgit over the remaining tenure of the existing unrated sukuk,” said the company.
CIMB Investment Bank Bhd and HSBC Amanah Malaysia Bhd are the joint principal advisers and joint lead arrangers for the sukuk programme. CIMB, HSBC and Maybank Investment Bank Bhd are the joint lead managers and joint bookrunners for the programme.