Malaysian mobile operator Celcom Axiata Berhad has priced what it describes as a “landmark” sukuk murabahah (Islamic bond) issuance of RM5bn (US$1.6bn).
The issuance is the largest of its kind based upon a tawarruq arrangement ever to be placed in…
Malaysian mobile operator Celcom Axiata Berhad has priced what it describes as a “landmark” sukuk murabahah (Islamic bond) issuance of RM5bn (US$1.6bn).
The issuance is the largest of its kind based upon a tawarruq arrangement ever to be placed in the Malaysian debt capital market, Celcom, part of the Malaysia-based Axiata Group, said in a statement today.
Dato’ Sri Jamaludin Ibrahim, president and group chief executive officer of Axiata group Berhad, highlighted the importance of the issue, saying: “This is the second Islamic debt programme established by the Axiata Group in 2012, following the US$1.5bn equivalent multi-currency Sukuk programme which was the first internationally-rated Asia Pacific multi-currency Sukuk programme. Both programmes are in line with Axiata Group’s on-going group-wide initiative to optimise its balance sheet and improve its financial flexibility, whilst supporting the government’s vision.”
Proceeds from the new issuance, done via wholly-owned subsidiary Celcom Transmission (CTX), will be used primarily to refinance CTX’s existing debt and finance the company’s capital expenditure and working capital requirements, Celcom said.
The refinancing is expected to save more than RM350m (US$111.9m) on the remaining tenure of the existing unrated sukuk.
Celcom said RM3bn (US$959.4m) of the sukuk was priced via a bookbuilding process with a grand total of RM10bn (US$3.2bn) and generated strong demand from a range of investors, including asset management companies, financial institutions, insurance companies and corporations. The remaining RM2bn (US638.5m) was privately allocated to strategic investors in eight, nine and 10-year tranches.
The Malaysian Rating Corporation Board has assigned the issuance its highest ‘AAA’ rating.
CIMB Investment Bank Berhad and HSBC Amnah Malaysia Berhad are joint principle advisers and lead arrangers for the sukuk programme. CIMB, HSBC and Maybank Investment Bank Berhad are joint lead managers and bookrunners.
