Celcom Axiata unit issues RM4.2bil sukuk

Group aims to streamline business functions, establish network-centric entity

Celcom Axiata Bhd has successfully placed out RM4.2bil nominal value unrated sukuk under a private offering as part of an internal exercise to streamline Celcom’s business functions and to establish a network-centric entity.

In a statement, Celcom said the sukuk issuance, with tenures ranging from five to 10 years, would be issued by its wholly-owned subsidiary Celcom Transmission (M) Sdn Bhd (CTX).

Celcom said this internal exercise was a component of its holding company Axiata’s groupwide initiative to transform its regional back-end operations to drive efficiencies, enhance cost savings and create value.

Under the exercise, Celcom’s telecommunication network business will be transferred to CTX.

It said CTX would not be tasked only with the day-to-day operations and management of the network business moving forward, but also to unlock its value and close technology-related gaps with tactical and strategic initiatives.

Celcom chief executive officer and director of CTX, Datuk Seri Shazalli Ramly, said the company would continue to look for opportunities to improve costs and operational efficiencies.

“Aside from having a differentiated sales and marketing strategy, we need to be equally focused and innovative on our network capabilities to drive financial performance.

“We believe this internal exercise to streamline Celcom’s business operations would be a critical step in achieving such an objective,” he said.

For the sukuk issuance, the Employees Provident Fund (EPF) will subscribe RM3.4bil while the balance of RM800mil will be taken up equally by CIMB Islamic Bank Bhd and Malayan Banking Bhd.

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

Present at the signing of the sukuk programme were EPF chief executive officer Tan Sri Azlan Zainol, CIMB Group chief executive officer Datuk Seri Nazir Razak and Malayan Banking Bhd president and chief executive officer Datuk Seri Abdul Wahid Omar.