Malaysia’s mobile service provider Digi.Com Bhd is raising $1.12 billion (MYR5 billlion) through sukuks – by establishing two Murabahah sukuk programmes – raising funds for its long term growth plan and capital requirement that includes a network upgrade this year.
In a filing at the stock exchange on Tuesday, DiGi said that the papers will be issued via 15-year Islamic medium term notes (IMTN), which will have up to MYR5 billion in nominal value, and 7-year Islamic commercial papers (ICP), with up to MYR1 billion in nominal value.
The first issuance of the IMTN and ICP shall be made within sixty (60) business days from the date of lodgement of information and documents relating to the IMTN Programme and ICP Programme with the Securities Commission Malaysia (SC), it said. The IMTN has been rated AAA/Stable by rating agency RAM Rating Services Bhd, with the ICP being rated P1, said DiGi.
The IMTN and ICP will not be listed on Bursa Malaysia Securities Bhd or any other stock exchanges, the statement noted.
With regard to the issue price, the IMTN may be issued at par, at a discount or at a premium while the ICP shall be issued at a discount. The issue price of the IMTN and ICP shall be determined prior to each issuance.
“We plan to use the funds for investing in data and digital growth opportunities, deliver the best 4Gplus and internet network, and digitisation of core business, invest in strategic assets and future spectrum obligations, and other working capital needs,” Digi said in another statement.
The company was allotted 900MHz spectrum in February last year and it intends to put it into action by July.
The new spectrum will help in a better indoor penetration, wider outdoor coverage and Internet capacity. Digi will implement a focused roll-out starting with key business areas in urban and suburban locations nationwide.