KUALA LUMPUR (Oct 31): Maxis Bhd intends to fund its spectrum fees amounting to RM816.75 million mainly through external borrowings.

According to the telecommunication services provider, its gearing level calculated based on net debt-to-earnings before interest, tax, depreciation and amortization will remain at approximately 2.0 times.

In a bourse filing today, Maxis said the funding option came after the group's "thorough consideration of all factors" including future cash flow projections and reinvestment opportunities.

"The borrowings are not expected to have material impact on our consolidated earnings, earnings per share and net assets," it added.

On Aug 30 this year, the Malaysian Communications and Multimedia Commission (MCMC) announced the details of the long-awaited spectrum assignment for telecommunications companies.

Maxis said it had received an offer letter from MCMC for the assignment of 2x10Mhz of the 900MHz band and 2x20MHz of the 1800MHz band for a sum of RM816.75 million as full settlement upon acceptance or for higher amounts under staggered payment options.

"In addition, total spectrum maintenance fees are fixed at RM70.25 million per annum for the entire assignment period. The assignments upon issuance will be effective from July 1, 2017, for a period of 15 years," it added.

Maxis said it has until noon on Nov 1, 2016 to accept the offers and make the required payment.

Shares in Maxis closed down one sen or 0.17% at RM5.96, for a market value of RM44.99 billion.