CelcomDigi Unit Plans RM10 Billion Sukuk Murabahah Programme

CelcomDigi Telecommunications Sdn Bhd, a wholly owned subsidiary of CelcomDigi Bhd, plans to establish a Sukuk Murabahah programme worth up to RM10 billion. The programme aims to fund corporate requirements and refinancing.

The Islamic medium-term notes programme has a perpetual tenure and is based on the shariah principle of Murabahah via a Tawarruq arrangement, Bernama, Malaysia's national news agency said in a statement.

The funds raised will be used for capital expenditure, working capital, and general corporate purposes of the issuer, its subsidiaries, and the CelcomDigi group. 

The proceeds may also be used to refinance existing conventional borrowings or Islamic financing, and future Islamic financing. Additionally, the funds can be used to pay fees and expenses related to the programme's establishment and sukuk issuances.

The programme has been rated AAA by RAM Rating Services Bhd and provides flexibility for the issuance of sustainability and sustainability-linked Sukuk Murabahah. AmInvestment Bank Bhd and CIMB Investment Bank Bhd are the joint principal advisers, joint lead arrangers, and joint lead managers for the programme. AmBank Islamic Bhd and CIMB Islamic Bank Bhd are the joint shariah advisers.

The programme will ensure that proceeds are utilised for shariah-compliant purposes. This move is part of CelcomDigi's efforts to diversify its funding options and support its business growth.

CelcomDigi is a major telecommunications company in Malaysia, providing a range of services including mobile and fixed-line communications. The company has been investing in its network infrastructure and services to improve its competitiveness in the market.

The Sukuk Murabahah programme is a type of Islamic financing that complies with shariah principles. It is a popular financing option for companies in Malaysia, offering a viable alternative to conventional financing methods.