11 May 2020
KUALA LUMPUR – As a regional telecommunications company, Axiata Group Berhad (“Axiata” or the “Company”) has successfully completed the first-of-its-kind Syndicated Multi-Currency Shariah-compliant sustainability-linked financing facilities of USD800 million (“Syndicated Financing”). It is the first sustainability-linked Islamic Syndicated Financing effort undertaken in Malaysia and globally.
The signing of the Syndicated Financing marks a monumental milestone for Axiata. The combination of Islamic financing principles coupled with sustainability parameters and the multi-currency feature breaks new ground in both local and international financing markets. It also underscores Axiata’s commitment towards ensuring the alignment of its business strategies and sustainability framework.
Apart from the diversification of funding options, the innovative financing mechanism offered through a Shariah-compliant sustainability financing structure serves to enhance Axiata’s liquidity position, particularly during these uncertain times whilst enabling the Company to reap the benefits of optimal financing cost. As such, Axiata will benefit from lower financing costs should it continue to exceed the stringent criteria the company has set for itself under the said framework.
The completion of the Syndicated Financing further demonstrates the strong support and confidence of the banking fraternity towards Axiata’s long-term business sustainability and direction, backed by its well-established regional presence in 11 markets throughout ASEAN and South Asia.
The digital signing ceremony was conducted between Axiata and OCBC Al-Amin Bank Berhad which acted as the Lead Coordinator and Sustainability Structuring and Shariah Adviser, together with the other mandated lead arrangers and financiers, Oversea-Chinese Banking Corporation Limited, Labuan Branch; Maybank Islamic Bank Berhad; and MUFG Bank (Malaysia) Berhad.
Tan Sri Jamaludin Ibrahim
Axiata’s President and Group Chief Executive Officer
In Axiata, sustainability is not just a buzz word. Sustainability as a framework and guidance is embedded in our culture and business strategy. Our commitment towards compliance and sustainability is now further incentivized by direct contribution towards our bottom-line through this innovative financing mechanism that recognises and rewards Axiata for meeting sustainability performance targets.
This Syndicated Financing to the amount of USD800 million signifies a major milestone for Axiata. It demonstrates our approach towards business operations and financing avenues to deliver long-term growth and sustainable performance. As a Company that works to create value across all our markets, we will continue to be guided by international best practices and sustainability principles.
Axiata has been a founding constituent on the FTSE4Good Bursa Malaysia Index since its inception in 2014 and is one of the top 10 constituents by market capital. The increasing stringency on the measurement criteria practiced by FTSE4Good ensures that only the most compliant corporates with strong ESG and sustainability credentials will continue to be ranked on the index.
About Axiata
As one of the leading telecommunications groups in Asia in pursuit of its vision to be the New Generation Digital Champion by 2022, Axiata has transformed itself from a holding entity with a portfolio of pure-play mobile assets into a Triple Core Strategy driven business focusing on Digital Telco, Digital Businesses and Infrastructure.
Within ASEAN and South Asia, the Group has controlling stakes in market-leading mobile and fixed operators in the region including 'Celcom' in Malaysia, 'XL' in Indonesia, 'Dialog' in Sri Lanka, 'Robi' in Bangladesh, 'Smart' in Cambodia and 'Ncell' in Nepal. Axiata is actively spearheading efforts to transform its mobile-centric operations into digital converged companies.
Axiata's digital businesses are focused on three verticals namely Digital Financial Services ('Boost'), Digital Advertising ('ADA') and Digital Platform ('APIgate') in the global market.
'edotco', the Group's infrastructure company, operates in six countries to deliver telecommunications infrastructure services, amassing approximately 27,500 towers. Presently the 12th largest independent tower companies globally, it aims to be one of the top regional telecommunications tower companies and is committed to responsible and sustainable business operations.
As a committed and long-term investor, and in line with its sustainability goals, the Group actively supports and drives young talent development; disaster response and recovery; as well as green initiatives. Axiata's broader goal of Advancing Asia aims to piece together the best in the region in terms of innovation, connectivity and talent.
Issued By
Corporate Communications
Axiata Group Berhad
Level 30, Axiata Tower,
9 Jalan Stesen Sentral 5, Kuala Lumpur Sentral 50470 Kuala Lumpur Malaysia
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