Malaysia’s telecommunications group CelcomDigi Bhd has proposed a RM10 billion Islamic medium-term notes programme to support its capital expenditure, working capital requirements and other corporate needs, while providing an avenue to refinance existing borrowings.
According to a filing with Bursa Malaysia, the group’s wholly owned subsidiary, CelcomDigi Telecommunications Sdn Bhd, has submitted the required information and documentation for the proposed Sukuk Murabahah programme to the Securities Commission Malaysia.
The programme has been assigned an AAA rating by RAM Rating Services Bhd, reflecting its strong credit standing. It will provide the group with financing flexibility to meet its business requirements and manage its existing financial obligations.
Proceeds raised through the sukuk issuances will be allocated towards capital expenditure, working capital and general corporate purposes across CelcomDigi and its subsidiaries. The funds may also be used to refinance existing conventional borrowings, Islamic financing facilities and future Islamic financing obligations, including the redemption of outstanding sukuk issued under the programme. A portion of the proceeds will cover expenses associated with establishing the programme and conducting subsequent issuances.
The proposed programme also gives CelcomDigi the flexibility to issue sustainability, green, social and sustainability-linked sukuk, subject to the relevant sustainable and responsible investment frameworks. This could support the group’s financing needs while expanding its access to sustainable Islamic capital market instruments.
CelcomDigi stated that all proceeds raised under the programme would be utilised exclusively for Shariah-compliant purposes.
AmInvestment Bank Bhd and CIMB Investment Bank Bhd have been appointed as the joint principal advisers, joint lead arrangers and joint lead managers for the proposed programme.