TM proposes RM4b sukuk


Telekom Malaysia Bhd (TM) intends to raise as much as RM4 billion from sukuk wakalah programmes under the Securities Commission Malaysia’s lodge and launch framework.

The telelcommunications company (telco) in an exchange filing yesterday noted that the sukuk programmes will consist of Islamic commercial papers (ICP) and Islamic medium-term notes (IMTNs).

The ICP and IMTNs programmes will have a tenure of seven and 30 years respectively, from the date of issuance and have been assigned short-term rating of P1 and long-term rating of AAA respectively, by RAM Rating Services Bhd.

The proceeds from the issuance will be by TM and its subsidiaries for their capital expenditure and business operating requirements, which shall be Shariah-compliant.

The telco noted that the finan-cing programmes shall provide it with the flexibility to manage its fundraising exercise and to have an alternative access to debt funding.

AmInvestment Bank Bhd and Maybank Investment Bank Bhd are the joint principal advisors, joint lead arrangers and joint lead managers for the sukuk programmes.