Axiata raises new debt, cut capex spending for 2020


  • Corporate News
  • Wednesday, 29 Jul 2020

Axiata deputy group CEO Datuk Izzadin Idris said the bulk of the sukuk will be used to retire some of the group debt and the remaining as working capital for its subsidiaries.

KUALA LUMPUR: Axiata Group Bhd is taking advantage of the current low-interest-rate environment to raise US$1bil worth of sukuk.

It is understood to be one of the largest sukuk raised by corporates since 2015 when the national oil company Petroliam Nasional Bhd (Petronas) raised US$1.25bil sukuk.

Axiata deputy group CEO Datuk Izzadin Idris said the bulk of the sukuk will be used to retire some of the group debt and the remaining as working capital for its subsidiaries.

“We are targeting to complete the exercise by the end of next month and it will be in tranches with tenures of 10-year, 15-year and 30-year,” he told reporters after Axiata’s annual general meeting on Wednesday.

“We are getting good rates for this issuance,” he added.

The arrangers for the facilities were CIMB Bank, Standard Chartered, UBS and Citibank Bhd, Izzadin said.

Meanwhile, in light of the current challenging environment due to the coronavirus crisis, Izzadin said Axiata has reduced its capital expenditure (capex) for this year.

“We have decided to utilise 85% of our planned capex for 2020,” he said.

Earlier, Axiata announced that it is allocating RM6.6bil capex for an expansion plan, especially in Indonesia.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

Axiata , sukuk , Izzadin Idris

   

Did you find this article insightful?

Yes
No

100% readers found this article insightful

Across the site