Wednesday April 6, 2011
TM gets approval for RM2bil Islamic debt programmes
PETALING JAYA: Telekom Malaysia Bhd (TM) has received Securities Commission's approval to establish Islamic commercial papers (ICP) and Islamic medium-term notes (IMTN) programmes with a combined limit of up to RM2bil.
TM said in a filing with Bursa Malaysia yesterday that the proposed programmes, with tenures of seven and 15 years respectively, have been assigned ratings of P1 and AAA respectively by RAM Rating Services Bhd.
It said the proceeds would be used to meet TM's capital expenditure requirements.
The company said the proposed programmes were in line with its capital management framework to drive capital structure or cost optimisation and shareholders' value enhancement.
“TM will also have the flexibility to time its fund-raising exercise over the tenures of the programmes as well as having an alternative access to debt funding, in addition to conventional bank borrowings,” it added.