Maxis Communications, Malaysia’s leading mobile phone operator, is likely to raise around US$1.4bn worth of debt before the year is out.
According to Bloomberg, Maxis has begun discussions with bankers with a view to sourcing funds to repay existing debt…
Maxis Communications, Malaysia’s leading mobile phone operator, is likely to raise around US$1.4bn worth of debt before the year is out.
According to Bloomberg, Maxis has begun discussions with bankers with a view to sourcing funds to repay existing debt and to upgrade its networks. It is possible that Maxis will tap the bond market for the first time, CFO Rossana Rashidi told Bloomberg, as the operator seeks US$766m to repay a bridge loan and further funds to improve its mobile and broadband networks. Maxis recently stated that it would spend US$435m to upgrade networks during 2010.
The financing could be dollar or ringgit denominated and could be either Islamic or conventional in its structure.
Maxis currently has a net debt-to-equity ratio of 43%.
Early this year Maxis secured a US$2bn seven-year loan. In 2009 it raised US$3.3bn from a listing on its domestic bourse.
Meanwhile, Maxis has said that it would consider committing to network sharing agreements with other operators in order to reduce operating costs.
