Malaysian network services provider OCK Group is looking to use the MR150m (US$46.5m) to be raised from its Islamic bond (sukuk) programme to build and buy more towers.
On Monday, the company established a 20-year sukuk programme, with BNP Paribas…
Malaysian network services provider OCK Group is looking to use the MR150m (US$46.5m) to be raised from its Islamic bond (sukuk) programme to build and buy more towers.
On Monday, the company established a 20-year sukuk programme, with BNP Paribas acting as principal adviser and lead arranger. However, buyers have yet to subscribe to the programme, OCK managing director Sam Ooi Chin Khoon noted during a press conference.
The company said in a stock exchange announcement that proceeds will be used for general working capital purposes. But in the press conference shortly after, Ooi was more precise about the use of the proceeds, saying the funding would go towards building and acquiring more telecoms towers.
Those towers, which cost between MR60,000 (US$18,630) and MR300,000 (US$93,000) depending on their location, would be then leased back to mobile operators.
Ooi also told local reporters that he expects revenues from its network services segment, as opposed to its green technology and solar business segment, to increase as more operators roll out 4G services.
