Tuesday, April 5, 2011

Telekom Malaysia plans RM2b debt notes for capex

KUALA LUMPUR: TELEKOM MALAYSIA BHD [] (TM) has received the Securities Commission's (SC) approval to issue Islamic debt papers with a combined limit of up to RM2.0 billion for capital expenditure requirements.

TM said on Tuesday, April 5 the programme would be the Islamic commercial papers (ICP) programme and an Islamic medium term notes (IMTN) programe.

'The proposed ICP programme and the proposed IMTN programme, which have respective tenures of seven and 15 years from the date of first issue, have been assigned ratings of P1 and AAA respectively by RAM Rating Services Bhd,' it said.

TM said with the proposed programmes in place, TM would have the flexibility to time its fund raising exercise over the tenures of the proposed programmes as well as having an alternative access to debt funding, in addition to conventional bank borrowings.

It added the proceeds to be raised through the issuance of ICP and/or IMTN'' will be used by TM to meet its capital expenditure requirements.

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