edotco Malaysia raises RM1.4 billion through sukuk issuance

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PETALING JAYA: edotco Malaysia Sdn Bhd has raised RM1.4 billion from a sukuk under its new Islamic medium-term note program of up to RM3 billion.

The sukuk issuance represents the telecom tower owner and operator’s first venture into the ringgit debt capital markets for fundraising, the company said in a statement yesterday.

The sukuk bookbuilding exercise had attracted strong interest from Malaysian fixed income investors, with the order book exceeding RM9 billion at its peak, leading edotco Malaysia to raise the transaction from 1 RM 1.4 billion to RM 1.4 billion, which is a strong offer. to cover the ratio of 5.2 times.

Strong investor interest also helped tighten overall sukuk yields by 22 basis points (bps) across all mandates and was eventually pegged at 3.93% pa ​​(three years), 4.27% pa (five years), 4.44% per year (seven years) and 4.54% per year (10 years).

“With edotco Malaysia’s first sukuk issuance, edotco Group takes another important step towards integrating sustainable and prudent capital management into its business strategy.

“This sukuk issuance represents a good opportunity for the edotco group to further diversify into alternative sources of funding that match our cash flow profile,” said edotco group chief executive Mohamed Adlan Ahmad Tajudin.

The edotco group is controlled by Axiata Group Bhd. The proceeds raised will be used to fund the general Syariah-compliant corporate objectives of the edotco Malaysia group of companies and the refinancing of its existing borrowings.

The edotco group operates and manages a portfolio of over 50,000 towers in Malaysia, Indonesia, Bangladesh, Cambodia, Sri Lanka, Pakistan, Philippines, Myanmar and Laos.

The sukuk program was given a final rating of AA+IS with a “stable” outlook by MARC Ratings Bhd.

A Bloomberg report this week said the edotco group was considering an initial public sale of shares that could fetch up to US$600 million (RM2.7 billion).

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