KUALA LUMPUR (July 29): Axiata Group Bhd has confirmed that it will be raising up to US$1 billion via a combination of sukuk and conventional bonds, with half of the proceeds to be used to refinance its debt.

"The board has approved our proposal to raise about US$1 billion. We've appointed four banks to act as joint lead managers for us. The funds or the raised indicative quotes are quite attractive," deputy group chief executive officer Datuk Izzaddin Idris said during a media briefing after the group's annual general meeting today.

The appointed joint lead managers are CIMB, Standard Chartered, UBS, and Citigroup.

"The idea is that if Axiata is able to borrow at a much cheaper cost [than its subsidiaries], it makes sense for us to raise the funds and lend to [our] operating companies," Izzaddin said.

The papers will have tenures of between 10 and 30 years. Izzaddin said Axiata expects the arrangement for the issuance to be completed in August.

"It is a combination of both sukuk and conventional, because the sukuk market may not give us the depth of 30 years," he added.

Axiata, a major telecoms player in Asia, had current borrowings of RM9.05 billion against cash of RM5.96 billion as at March this year.

It was reported that Axiata last issued sukuk in 2016, when it raised US$500 million, following its debut shariah-compliant offering in 2015.

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