MY Dealbook: Maxis plans $2.5b sukuk, IDB to float bonds worth $86.6m

Malaysian corporates have announced major sukuk issuances including one by the largest telecommunications group Maxis Bhd and another by the Islamic Development Bank.

Maxis’ unit plans $2.5b sukuk

A unit under telecommunications group Maxis Bhd, Maxis Broadband Sdn Bhd, is planning a sukuk (Islamic bond) issuance to raise as much as MYR10 billion for acquisitions and capital expenditure.

Maxis said, in a Bursa Malaysia filing, Maxis Broadband intends to use the funds raised from the 30-year unrated medium term notes programme to finance the settlement of acquisitions “in relation to the businesses and undertakings, including relevant assets and liabilities” from two other Maxis subsidiaries, namely Maxis Mobile Sdn Bhd and Maxis Mobile Services Sdn Bhd.

Maxis added that it has filed with the Securities Commission Malaysia (SC) for the sukuk programme.

“The sukuk murabahah shall have a tenure of more than one year and up to 30 years as the issuer may select, provided that the sukuk murabahah mature on or prior to the expiry of the unrated sukuk murabahah,” it said.

CIMB Investment Bank Bhd is the sole principal adviser and sole lead arranger for the programme, while CIMB Islamic Bank Bhd is the shariah adviser for the programme.

Islamic Development Bank issues $86.6m sukuk in Malaysia

The Islamic Development Bank (IsDB) has issued a MYR350 million ($86.6 million) sukuk for project financing, and other development activities.

The sukuk wakalah, or entrusted shariah compliant bond, was successfully issued by Tadamun Services Bhd, a special purpose vehicle set up by IsDB to issue such sukuk.

The Sukuk Issuance has the highest credit rating of AAA by Malaysian Rating Corporation Berhad (“MARC”), reflecting the strong credit strength of IsDB.

IsDB president Dr. Ahmad Mohamed Ali said, the successful issuance of sukuk in Malaysian Ringgit is a testimony to the increasing interest for sukuk, and the bank will work with its partners to continue deepening the sukuk market.

IsDB is a multilateral development bank whose shareholders comprise the 57 member countries of the Organisation of Islamic Cooperation (OIC). IsDB promotes economic development in its member countries and Muslim communities in non-member countries.

RHB Investment Bank Bhd, CIMB Investment Bank Bhd and Maybank Investment Bank Bhd were the joint lead managers, joint principal advisers and joint lead arrangers for the sukuk issuance.

Also read:

Malaysia’s Axiata issues $500m sukuk for Ncell acquisition

Malaysia says $1.5b sukuk bond issue oversubscribed

Philippines to join other Asian nations in testing ‘sukuk’ as viable funding option

Indonesia pushes 53 state-owned infrastructure firms to tap ‘sukuk’ route to raise funds

Indonesia raises $2.5b in its largest global ‘sukuk’ offering

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.