Sri Lankan telco Dialog Axiata’s board of directors has approved the establishment of a 15-year Islamic medium-term note programme of up to Rs1.2bn (US$394m) in Malaysia.
Under the terms of the Malaysian Ringgit-denominated Sukuk Programme, the…
Sri Lankan telco Dialog Axiata’s board of directors has approved the establishment of a 15-year Islamic medium-term note programme of up to Rs1.2bn (US$394m) in Malaysia.
Under the terms of the Malaysian Ringgit-denominated Sukuk Programme, the company may issue Sukuk Murabahah when it sees fit, involving Shariah-compliant commodities, director Hans Wijayawardhane said in a letter to the Colombo Stock Exchange.
Dialog Axiata plans to use the proceeds to refinance existing debt and Sukuk, pay associated fees and expenses, fund investments and operational and capital expenditure and for working capital and other corporate and funding purposes, according to the letter.
The establishment of the programme is subject to regulatory approval in Sri Lanka and Malaysia as well as market conditions and investor interest.
Dialog Axiata noted that there is no binding agreement as yet, adding that it will keep the Colombo exchange informed of developments.
The company did not disclose who would provide the facility.