Indonesian mobile operator XL Axiata plans to raise up to Rp1.5trn (US$105m) from sharia compliant bonds this year, according to local reports citing its finance director.
Indonesian mobile operator XL Axiata plans to raise up to Rp1.5trn (US$105m) from sharia compliant bonds this year, according to local reports citing its finance director.
Mohamed Adla was quoted saying the notes would have a tenure of two years. The company is awaiting regulatory and stock exchange approval.
One report suggested proceeds could be used alongside tower asset sales to refinance debt, while another said the sukuk would only go towards working capital.
XL Axiata, owned by Malaysian telecoms giant Axiata, was unable to comment before the press deadline.
The telco has been looking to restructure a US$1.5bn loan to reduce its exposure to the weakening Indonesian rupiah.
It told TelecomFinance in August that US$900m of that facility matures in 2017, with the rest staggered until 2019. There is a small tranche that matures in 2016.
DBS Bank, Bank of Tokyo Mitsubishi UFJ and UOB Bank are managing the facility.
Islamic financing has become increasingly popular among telcos seeking to tap a larger pool of investors in the Middle East, Asia, and Europe.
Axiata established a US$1.5bn sharia compliant bond scheme in 2012, and claims to be the first Asian telco to set up such a multi-currency sukuk programme.