Telekom Malaysia (TM) has received regulatory approval for new shariah-compliant commercial paper and medium term note programmes, which will allow it to issue up to MR3bn (US$915m) in Islamic bonds.
The two sukuk proposals were given the okay by the…
Telekom Malaysia (TM) has received regulatory approval for new shariah-compliant commercial paper and medium term note programmes, which will allow it to issue up to MR3bn (US$915m) in Islamic bonds.
The two sukuk proposals were given the okay by the local securities commission and are being managed by CIMB and Maybank. The banks are joint principal advisers, joint lead arrangers, joint lead managers, joint bookrunners and joint shariah advisers on the deal.
TM said the agreement gives it added flexibility in its debt funding as it is an alternative to conventional bank borrowings.
Proceeds will be used for TM’s capital expenditure and general business operations in compliance with sharia law.
The planned ICP programme will have a tenure of seven years while the IMTN programme has a proposed 20-year term. The two programmes were assigned P1 and AAA ratings respectively by local agency RAM Rating Services.
At TM’s AGM in May, the incumbent’s CFO reportedly said the company was not planning any bond issue this year, adding that it would repay a facility maturing in December with existing cash.
