Incumbent Telekom Malaysia has won approval for two Islamic debt programmes with a combined limit of MR2bn (US$660m).
In a statement on the Malaysian stock exchange early April, the company said it had won approval from the Malaysian authorities for an…
Incumbent Telekom Malaysia has won approval for two Islamic debt programmes with a combined limit of MR2bn (US$660m).
In a statement on the Malaysian stock exchange early April, the company said it had won approval from the Malaysian authorities for an Islamic Commercial Papers (ICP) programme and an Islamic Medium Term Notes (IMTN) programme.
The programmes are being arranged by AmInvestment Bank and CIMB.
Telekom Malaysia said that it would use the proceeds from the issuance of this debt to meet its capital expenditure requirements. A spokesperson told TelecomFinance that the debt would mostly fund the high speed broadband (HPBB) service of its subsidiary, UniFi, which includes the development of a FTTH network. This is estimated to cost MR1.6bn (US$529m) in 2011 in order to meet the target of getting 1.1 million subscribers by the end of the year.
Aside from that, the proceeds of the debt programmes will also go on maintaining and upgrading Telekom Malaysia’s current copper cable network.
