KUALA LUMPUR: edotco Group’s subsidiary, edotco Malaysia Sdn Bhd has successfully priced and issued its RM1.4 billion sukuk under its newly established Islamic Medium Term Notes Programme of up to RM3 billion (sukuk programme).
The sukuk issuance represents its first venture into the ringgit debt capital markets for fundraising.
The book-building exercise of the sukuk had garnered robust interest from Malaysian fixed income investors.
With an order book that grew in excess of RM9 billion at its peak, it allowed edotco Malaysia to upsize the transaction from the initial size of RM1 billion to RM1.4 billion, representing a strong bid to cover ratio of 5.2 times, according to a statement today.
The strong interest from investors also enabled the sukuk overall yields to be tightened by 22 basis points (bps) across all tenures and were finally priced at 3.93 per cent per annum (p.a) (three years), 4.27 per cent p.a (five years), 4.44 per cent p.a. (seven years) and 4.54 per cent p.a. (10 years).
‘’With edotco Malaysia’s maiden sukuk issuance, edotco Group takes another significant step toward integrating sustainable and prudent capital management into our business strategy.
‘’This sukuk issuance represents a good opportunity for edotco Group to further diversify into alternative funding sources that match our cashflow profile,’’ edotco Group’s chief executive officer Mohamed Adlan Ahmad Tajudin said.
He said the sukuk programme provides flexibility for edotco Malaysia to issue sustainability sukuk, in line with the commitment towards advancing environmental social governance (ESG) best practices in all aspects of its businesses.
The issuance proceeds raised from the sukuk programme will be utilised to fund edotco Malaysia’s group of companies’ shariah-compliant general corporate purposes and refinancing of its existing borrowings.
edotco Group is the first and leading regional integrated telecommunications infrastructure services company in Asia, operating and managing a portfolio of over 50,000 towers across Malaysia, Indonesia, Bangladesh, Cambodia, Sri Lanka, Pakistan, the Philippines, Myanmar and Laos.
Maybank Investment Bank Bhd (Maybank IB) and OCBC Al-Amin Bank Bhd (OCBC Al-Amin) are the joint principal advisers, joint lead arrangers and joint sustainability structuring advisors for the sukuk programme.
Maybank IB and OCBC Al-Amin also acted as joint lead managers for the sukuk issuance together with RHB Investment Bank Bhd.
The sukuk programme has been assigned a final rating of AA+IS with a stable outlook by MARC Ratings Bhd.- Bernama
