by TMR

Axiata Group Bhd’s Indonesia arm, PT XL Axiata Tbk, has proposed to raise funds by undertaking two new public offering programmes for bonds and sukuk ijarah.

Both methods will seek to raise to five trillion rupiah (RM1.44 billion in nominal value each.

In a filing to the local bourse yesterday, Axiata noted the proposed XL bonds and sukuk ijarah namely, Shelf Registration Bond I XL Axiata Tranche I Year 2018 and Shelf Registration Sukuk Ijarah II XL Axiata Tranche I Year 2018, will be established under a two-year programme.

The issuance of the proposed XL bonds and sukuk ijarah with each principal amount of up to one trillion rupiah shall consist of five series with maturity ranging between 370 days and 10 years, the telecommunication company noted in its filing.

The proposed XL bonds and sukuk ijarah will be issued via Shelf Registration Public Offering through a book-building process and have been assigned a rating of AAA (idn) — (Triple A) by PT Fitch Ratings Indonesia.

According to Axiata, the proposed XL bonds and sukuk Ijarah is an alternative funding resource with efficiency of time, price and total issuance in accordance with market conditions.

“Proceeds after deducting expenses in relation thereto, will, after deduction of issuance costs, be used fully for capital expenditure in order to increase XL’s capacity and expand its network and improve service quality,” it said. — TMR