OCK Group Bhd, Malaysia’s largest telecommunications network solutions provider, has announced its plan to raise up to RM700 million through the issuance of Sukuk Murabahah as part of its Islamic medium-term notes programme.
The funds raised from the programme will be used for financing general working capital, capital expenditure and the restructuring of existing borrowings, among other general corporate purposes.
This issuance is expected to have a tenure of 30 years from the date of the first issuance.
The first tranche of Sukuk Murabahah, amounting to RM400 million, has been assigned a preliminary credit rating of AA-by MARC Ratings Bhd.
United Overseas Bank (M) Bhd is acting as the principal advisor, lead arranger and the lead manager for the programme.
In a statement, OCK group MD Datuk Sam Ooi Chin Khoon said given the nature of OCK’s business in owning tower portfolio assets, the group has always been actively managing its exposure in terms of its borrowings.
“Bearing that in mind, we believe that the issuance of our Sukuk Murabahah strategically aligns with our long-term goals as it will enable us to further pare down our existing borrowings through the restructuring of our loans, especially our US dollar borrowings,” he added.
Moreover, he said the exercise will provide additional working capital for taking on larger capital expenditure projects and initiating new projects.
The move positions OCK to capitalise on potential opportunities in the evolving landscape of the 5G rollout.
- This article first appeared in The Malaysian Reserve weekly print edition