Maxis Broadband plans RM10 billion sukuk

PETALING JAYA: Maxis Bhd’s subsidiary, Maxis Broadband Sdn Bhd, is planning a RM10 billion sukuk programme to be used to acquire Maxis Mobile Sdn Bhd and Maxis Mobile Services Sdn Bhd.
In a Bursa Malaysia announcement, Maxis said Maxis Broadband on Wednesday lodged the unrated sukuk murabahah programme with the Securities Commission Malaysia.
The sukuk murabahah to be issued will have a tenure of more than one year and up to 30 years, depending on the issuer’s choice.
Last December, Maxis and its subsidiaries proposed to implement an internal reorganisation that was expected to consolidate and integrate the businesses and undertakings of its wholly-owned subsidiaries under Maxis Broadband.
Maxis Broadband had then entered into separate sale and purchase agreements with Maxis Mobile and Maxis Mobile Services to acquire their businesses and undertakings, including relevant assets and liabilities.
Maxis Broadband will use the sukuk proceeds for capital expenditure and working capital needs as well as other general funding requirements and general corporate purposes, including refinancing of other debt or financing obligations and any maturing sukuk murabahah.
CIMB Investment Bank Bhd is the principal adviser and lead arranger for the programme.