Celcom to use internal fund and sukuk to fund spectrum fee

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KUALA LUMPUR: The Malaysian Communications and Multimedia Commission has granted Axiata Group Bhd’s wholly owned subsidiary, Celcom Axiata Bhd and its wholly-owned subsidiary, Celcom Mobile Sdn Bhd the full settlement of spectrum fees amounting to RM816.75mil by this financial year.
 
“After considering the reinvestment opportunities, Celcom will be funding the spectrum fees mainly through its internal generated funds and existing Sukuk program.

“The borrowings are not expected to have any material impact on Axiata’s consolidated earnings, earnings per share and net assets. The gearing level, net debt-to-EBITDA (earnings before interest, tax, depreciation and amortisation) of Axiata, will be below two times,” Axiata said in a filing with Bursa Malaysia.

Axiata said all other conditions contained in the letters of offer dated Aug 30, 2016 in respect of the spectrum assignment remain the same.

“Celcom and Celcom Mobile had today, submitted to MCMC, acceptance of the 900MHz and 1800MHz spectrum assignment with the above payment terms,” it said.