Digi’s sukuk programme to support funding needs

PETALING JAYA: Digi.Com Bhd will establish up to RM5 billion sukuk programmes to support the company's funding requirements in line with its long-term strategy and growth plans.
It announced yesterday that it has received the acknowledgement receipts from the Securities Commission Malaysia (SC) for the lodgement of its sukuk programmes comprising Islamic Medium Term Notes (IMTN) and Islamic Commercial Papers (ICP) programmes.
Digi.Com's wholly-owned subsidiary Digi Telecommunications Sdn Bhd (Digi) will establish a 15-year IMTN programme of up to RM5 billion, together with a seven-year ICP programme of up to RM1 billion.
"Digi's Sukuk Programme allows us to tap on opportunities in the debt capital market with wider and diverse base of investors to strengthen our capital base and for more efficient funding cost. We plan to use the funds for investing in data and digital growth opportunities, deliver the best 4Gplus and internet network, and digitisation of core business, invest in strategic assets and future spectrum obligations, and other working capital needs," the company said in a statement yesterday.
 
"Digi remains committed to drive sustainable shareholders returns, and maintain strong balance sheet with net debt to Ebitda (earnings before interest, tax, depreciation and amortisation) managed below 2.0x in the next three years," it said.
RAM Ratings has assigned a AAA/Stable and P1 rating for the IMTN programme and ICP programme respectively.
 
CIMB Investment Bank Bhd is the sole principal adviser, sole lead arranger and lead manager for the sukuk programmes while CIMB Islamic Bank Bhd is the sole shariah adviser.