KUALA LUMPUR (June 17): Maxis Bhd, the country's largest mobile operator by subscribers, has proposed to set up a RM5 billion Islamic bond (sukuk) programme, with proceeds used for its capital expenditure and working capital and to refinance other debts.

In a filing with Bursa Malaysia, Maxis said the Securities Commission Malaysia (SC) has, vide its letter today, given its approval for the unrated sukuk programme, which will have a tenure of up to 30 years.

CIMB Investment Bank Bhd has been appointed as the sole principal adviser and lead arranger for the sukuk programme.

"The yield to maturity will be determined prior to each issuance of sukuk," said Maxis, adding that the sukuk will be redeemed by the issuer at 100% of their nominal value on their respective maturity dates. 

As at 4.50pm, shares in Maxis (fundamental: 1.15; valuation: 1.1) was down 0.31% at RM6.48, with 2.14 million shares traded. 

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)