Friday 29 Mar 2024
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KUALA LUMPUR (Oct ): Telekom Malaysia Bhd is seeking to raise up to RM4 billion through the establishment of sukuk wakalah programmes to fund its capital expenditure and business operating requirements.

TM, in a filing today, said it has lodged the proposal with the Securities Commission (SC) on Sept 28.

The sukuk wakalah programmes would comprise Islamic commercial papers (ICPs) and Islamic medium term notes (IMTN) programmes, said the telecommunications company.

“The ICP Programme and the IMTN Programme, which have respective tenures of seven and 30 years from the date of first issuance, have been assigned short-term rating of P1 and long-term rating of AAA respectively by RAM Rating Services Bhd,” TM said.

The tenure of each ICP, to be agreed upon later, may differ — but with a limit of 12 months. Each IMTN shall have a tenure of between one year and 30 years, TM added.

“For the avoidance of doubt, TM can on-lend the proceeds of the sukuk wakalah to its subsidiaries via shariah-compliant facilities for the afore-mentioned purposes, which shall be shariah-compliant,” it said.

AmInvestment Bank Bhd and Maybank Investment Bank Bhd are the joint principal advisers, joint lead arrangers and joint lead managers for the programmes, while AmBank Islamic Bhd and Maybank Islamic Bhd are the joint shariah advisers, it added.

Shares of TM slid five sen or 1.55% to close at RM3.17 today, giving it a market capitalisation of RM11.91 billion.

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