Malaysian mobile operator Celcom Axiata has issued a RM4.2bn (about US$1.3bn) nominal value unrated Sukuk in order to streamline its business operations and to operate a network-centrics entity. In a statement obtained by Malaysian national news agency…
Malaysian mobile operator Celcom Axiata has issued a RM4.2bn (about US$1.3bn) nominal value unrated Sukuk in order to streamline its business operations and to operate a network-centrics entity.
In a statement obtained by Malaysian national news agency Bernama, Celcom’s CEO, Mohammed Shazalli Ramly said that the company, which is part of the Axiata telecom group, was looking to transform its back-end operations in order to cut costs and drive synergies.
Bernama explained that the Sukuk issuance, with tenures ranging from five to 10 years, will be issued by Celcom’s wholly-owned subsidiary CTX. Celcom’s telecommunication network business will be transferred to CTX.
Under the issuance, the Employees Provident Fund will subscribe RM3.4bn while the remaining RM800m will be taken equally by CIMB Islamic Bank and Maybank Investment Bank. CIMB and Maybank are acting as joint principal advisers, joint lead arrangers and joint lead managers for the Sukuk, reported Bernama.
Celcom and Axiata were not available for comment by press time.
