Kuala Lumpur, 16 April 2010 - Axiata Group Berhad (“Axiata” or “Company”) today announced that its wholly-owned subsidiary, Axiata SPV1 (Labuan) Limited, is proposing to issue senior unsecured USD 300 million 10-year Fixed Rate Guaranteed Notes (“Notes”). The Notes will be unconditionally and irrevocably guaranteed by Axiata. The issuance is part of ongoing efforts to improve the Group’s capital management post demerger and will allow Axiata to have a longer debt maturity profile.
The net proceeds of the issue, which represents the first USD bond offering by a Malaysian corporate year to-date 2010, will be used for the purpose of refinancing the existing borrowings of Axiata’s subsidiary and for the general corporate purposes of the Group.
Dato’ Sri Jamaludin Ibrahim, President & Group Chief Executive Officer of Axiata said, “The exercise reinforces Axiata’s commitment to optimize the Group’s capital structure. In a short space of time Axiata has gone from deleveraging during the financial crisis to being rated investment grade, enabling us to tap into new sources of funding, namely the international debt capital markets, thus providing the Group further financial agility for long term growth. Furthermore, the exercise will enable Axiata to remain relevant and visible on the radar of investors”. The net proceeds of the issue, which represents the first USD bond offering by a Malaysian corporate year to-date 2010, will be used for the purpose of refinancing the existing borrowings of Axiata’s subsidiary and for the general corporate purposes of the Group.
The Notes will not be registered under the United States Securities Act of 1933 (as amended) (“Securities Act”) and will be offered outside the United States in accordance with Regulation S under the Securities Act. Applications have been made to list the Notes on the Stock Exchange of Hong Kong Limited and the Labuan International Financial Exchange.
In reflection of Axiata’s strong credit and financial profile as well as the sovereign shareholding, both S&P and Moody’s have rated Axiata as investment grade BBB and Baa2 respectively.
Goldman Sachs International and Morgan Stanley & Co. International plc are the Joint Global Coordinators. Goldman Sachs International, Morgan Stanley & Co. International plc and CIMB Bank (L) Limited are the Joint Bookrunners and Joint Lead Managers for the Notes.
