KUALA LUMPUR, April 16 — Axiata Group Bhd’s wholly-owned subsidiary, Axiata SPV1 (Labuan) Ltd, has proposed to issue senior unsecured US$300 million (RM958.5 million) 10-year fixed rate guaranteed notes.
Axiata, one of the largest Asian telecommunication companies focused on high growth low penetration emerging markets, will unconditionally and irrevocably guarantee the notes.
The issuance was part of ongoing efforts to improve the group’s capital management post demerger and would allow Axiata to have a longer debt maturity profile, the company said in a statement today.
“The net proceeds of the issue, which represents the first US dollar bond offering by a Malaysian corporate in 2010 to date, will be used for the purpose of refinancing the existing borrowings of Axiata’s subsidiary and for the general corporate purposes of the group,” it said.
It said the notes would not be registered under the United States Securities Act of 1933 (as amended) and would be offered outside the United States in accordance with Regulation S under the Act.
“Applications have been made to list the notes on the Stock Exchange of Hong Kong Ltd and the Labuan International Financial Exchange,” Axiata said.
In the statement, Axiata President and Group Chief Executive Officer Datuk Seri Jamaludin Ibrahim said the exercise reinforced Axiata’s commitment to optimise the group’s capital structure.
“In a short space of time, Axiata has gone from deleveraging during the financial crisis to being rated investment grade, enabling us to tap into new sources of funding, namely the international debt capital markets, thus providing the group further financial agility for long-term growth.
“Furthermore, the exercise will enable Axiata to remain relevant and visible on the radar of investors,” he said.
