This article first appeared in The Edge Financial Daily, on June 30, 2016.

KUALA LUMPUR: Maxis Bhd’s unit Maxis Broadband Sdn Bhd (MBSB) is planning a sukuk issuance of up to 30 years in tenure to raise as much as RM10 billion.

In a bourse filing yesterday, Maxis said MBSB intends to use the funds raised from the unrated medium-term notes programme to finance the settlement of acquisitions “in relation to the businesses and undertakings, including relevant assets and liabilities” from two other Maxis subsidiaries, namely Maxis Mobile Sdn Bhd (MMSB) and Maxis Mobile Services Sdn Bhd (MMSSB).

The proceeds will also be used as capital expenditure and working capital requirements of the group, said Maxis in its filing yesterday.

Maxis said a lodgement was made yesterday with the Securities Commission Malaysia for the sukuk programme. “The sukuk murabahah to be issued shall have a tenure of more than one year and up to 30 years as the issuer may select, provided that the sukuk murabahah matures on or prior to the expiry of the unrated sukuk murabahah,” it added.

Maxis announced an internal reorganisation last December to consolidate and integrate the businesses and undertakings of its wholly-owned subsidiaries under MBSB, which saw the inking of separate sale and purchase agreements with Maxis Collections Sdn Bhd, Maxis International Sdn Bhd, MMSB and MMSSB to purchase their businesses and undertakings, including relevant assets and liabilities. The group had expected to complete the reorganisation in the first half of this year.

Maxis shares closed unchanged at RM5.81 yesterday, with a market value of RM43.64 billion.