KUALA LUMPUR (Feb 3): CIMB Investment Bank Bhd said a nominal value of RM400 million out of Maxis Broadband Sdn Bhd's Islamic bonds worth up to RM10 billion under the Murabahah principle will be cancelled tomorrow (Feb 4) after Maxis Broadband purchased the securities or sukuk on the open market.

"Please be informed that Maxis Broadband has purchased the sukuk Murabahah detailed below (on) the open market. Pursuant hereto, RM400,000,000.00 nominal value of the said sukuk Murabahah will be cancelled on 4 February 2021 in accordance with clause 8.2 of the trust deed dated 20 July 2016.

"Stock Code: VJ160443. Nominal value of sukuk Murabahah to be cancelled: RM400,000,000.00," CIMB Investment Bank said in a statement.

Maxis Broadband is a subsidiary of mobile telecommunications network provider Maxis Bhd, according to the latter's annual report.

On June 29, 2016, Maxis Bhd said in a Bursa Malaysia filing that a lodgement was made on June 29, 2016 with the Securities Commission Malaysia (SC) for the unrated sukuk Murabahah programme by Maxis Broadband pursuant to the SC's guidelines on unlisted capital market products under the lodge and launch framework.

Maxis Bhd said then the sukuk would have a tenure of 30 years.

"The sukuk Murabahah to be issued shall have a tenure of more than one year and up to 30 years as the issuer (Maxis Broadband) may select provided that the sukuk Murabahah matures on or prior to the expiry of the unrated sukuk Murabahah programme," Maxis Bhd said.

Maxis Bhd said Maxis Broadband intends to use proceeds from the sukuk to finance among others, capital expenditure and working capital requirements of Maxis Broadband and its subsidiaries.

CIMB Investment Bank is the sole principal adviser and sole lead arranger for the sukuk programme while the Shariah adviser for the scheme is CIMB Islamic Bank Bhd, according to Maxis Bhd.

On Bursa as at the time of writing, Maxis Bhd's share price rose five sen or 1.02% to RM4.93 for a market value of about RM38.55 billion.

Maxis Bhd's latest-reported number of issued shares stood at 7.82 billion.