Maxis unit to issue RM10bil Islamic bonds

Fund-raising: Maxis had in December last year proposed an internal reorganisation aimed at consolidating and integrating the businesses and undertakings of Maxis’ wholly owned operating subsidiaries under MBSB. — Bloomberg

PETALING JAYA: Maxis Bhd’s unit, Maxis Broadband Sdn Bhd (MBSB), plans to issue Islamic medium-term notes with a nominal value of up to RM10bil, which will be partly used to finance the group’s internal reorganisation exercise.

In a filing with Bursa Malaysia, the telecommunications service provider said MBSB made a lodgement yesterday with the Securities Commission (SC) for the unrated sukuk murabahah programme by MBSB.

The unrated sukuk murabahah programme will have a tenure of more than one year and up to 30 years. The proceeds would be partly used to settle the purchase consideration in relation to buying the businesses and undertakings, including relevant assets and liabilities, from the target companies, namely, units Maxis Mobile Sdn Bhd and Maxis Mobile Services Sdn Bhd.

Maxis had in December last year proposed an internal reorganisation aimed at consolidating and integrating the businesses and undertakings of Maxis’ wholly owned operating subsidiaries under MBSB.

The proposed exercise was to have been completed in the first half of 2016,

The proceeds of the sukuk programme will also be used for the capital expenditure and working capital requirements of MBSB and its subsidiaries, and/or other general funding requirements and general corporate purposes of this group and/or refinancing of their other debt/financing obligations and/or refinancing any maturing sukuk murabahah.

CIMB Investment Bank Bhd is the sole principal adviser and the sole lead arranger for the unrated sukuk murabahah programme. The syariah adviser for the unrated sukuk murabahah programme is CIMB Islamic Bank Bhd. In June last year, Maxis had also received the SC’s approval to set up an unrated sukuk murabahah programme with a tenure of up to 30 years to raise up to RM5bil.

It issued RM840mil in nominal value in the same month.