Published: Thursday July 19, 2012 MYT 5:30:00 PM
Axiata to issue multi-currency US$1.5b Sukuk
It said on Thursday the Sukuk programme would also allow airtime vouchers, based on a specified amount of airtime minutes on the mobile telecommunications network of subsidiaries of Axiata for on-net calls, to be included as a trust asset.
"The Sukuk programme is based on the Shariah principle of Wakala and provides the flexibility of using airtime vouchers, Shariah compliant shares, and lease assets, as well as Murabaha receivables arising from the sale of commodities as the underlying assets," it said.
While Axiata had no immediate funding needs, the programme would enable the group to remain nimble and able to move quickly in the event of any changes and demands of the marketplace.
"Ultimately, having the Sukuk programme ready will allow Axiata to tap into the international debt capital markets in a timely and most cost efficient manner," it said.
Axiata said the Sukuk programme was a strategic move to tap into the regional market to raise funds in the future, providing Axiata with greater avenues in meeting its funding needs.
It said the Sukuk programme, which did not have a fixed tenure, was assigned a rating of BBB- by Standard & Poor's Ratings Services.
Based on Axiata's audited consolidated statement of financial position as at Dec 31, 2011 and assuming the maximum amount of US$1.5bil nominal value of Sukuk were, Axiata's consolidated gearing would increase from 0.59 times to 0.84 times.