Malaysian mobile operator Axiata Group Berhad has priced a five-year US$500m sukuk – its second under a US$1.5bn multi-currency sukuk programme set up in July 2012 – saying it attracted strong international interest.
Malaysian mobile operator Axiata Group Berhad (MYX:6888) has priced a five-year US$500m sukuk – its second under a US$1.5bn multi-currency sukuk programme set up in July 2012.
Axiata said in a statement that the sukuk priced at the tight end of the price guidance, with a final order book totalling some US$1.92bn, representing a bid-to-cover ratio of 3.8 times and a yield of 3.466%.
The sukuk is based on the Shari’a principle of Wakala whereby the underlying assets are airtime vouchers representing entitlement to a specified number of airtime minutes on Axiata’s network.
The cellco said the issue attracted international interest from Islamic and other investors, including asset managers, insurance companies, sovereign wealth funds and other financial institutions.
CIMB and Deutsche Bank are the joint arrangers and dealers of the sukuk programme as well as joint lead managers and bookrunners for the new offering.
Moody’s and Standard and Poor’s have rated the sukuk, which will be listed on the Malaysian and Singaporean stock exchanges, Baa2 and BBB respectively.
Axiata president and group CEO Dato’ Sri Jamaludin Ibrahim commented: “Axiata is focused on our long-term strategy to be a regional champion and will continue to look towards opportunities in the capital markets to strengthen our capital base and support our aspirations.”
Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia and significant strategic stakes in India and Singapore.