Axiata Group Berhad to Issue USD300 Million 10-Year Bonds
Kuala Lumpur, 16 April 2010 - Axiata Group Berhad (“Axiata” or “Company”) today announced that its wholly-owned subsidiary, Axiata SPV1 (Labuan) Limited, is proposing to issue senior unsecured USD 300 million 10-year Fixed Rate Guaranteed Notes (“Notes”). The Notes will be unconditionally and irrevocably guaranteed by Axiata. The issuance is part of ongoing efforts to improve the Group's capital management post demerger and will allow Axiata to have a longer debt maturity profile.
The net proceeds of the issue, which represents the first USD bond offering by a Malaysian corporate year to-date 2010, will be used for the purpose of refinancing the existing borrowings of Axiata's subsidiary and for the general corporate purposes of the Group.
Dato' Sri Jamaludin Ibrahim, President & Group Chief Executive Officer of Axiata said, “The exercise reinforces Axiata's commitment to optimize the Group's capital structure. In a short space of time Axiata has gone from deleveraging during the financial crisis to being rated investment grade, enabling us to tap into new sources of funding, namely the international debt capital markets, thus providing the Group further financial agility for long term growth. Furthermore, the exercise will enable Axiata to remain relevant and visible on the radar of investors”.
The Notes will not be registered under the United States Securities Act of 1933 (as amended) (“Securities Act”) and will be offered outside the United States in accordance with Regulation S under the Securities Act. Applications have been made to list the Notes on the Stock Exchange of Hong Kong Limited and the Labuan International Financial Exchange.
In reflection of Axiata's strong credit and financial profile as well as the sovereign shareholding, both S&P and Moody's have rated Axiata as investment grade BBB and Baa2 respectively.
Goldman Sachs International and Morgan Stanley & Co. International plc are the Joint Global Coordinators. Goldman Sachs International, Morgan Stanley & Co. International plc and CIMB Bank (L) Limited are the Joint Bookrunners and Joint Lead Managers for the Notes.
Axiata is one of the largest Asian telecommunication companies, focused on high growth low penetration emerging markets. Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India, Singapore and Iran. India and Indonesia are amongst the fastest growing markets in the world. In addition, the Malaysian-grown holding company has stakes in non-mobile telecommunication operations in Thailand and Pakistan.
The Group's mobile subsidiaries and associates operate under the brand name ‘Celcom' in Malaysia, ‘XL' in Indonesia, ‘Dialog' in Sri Lanka, ‘AKTEL' in Bangladesh, ‘HELLO' in Cambodia, ‘Idea' in India, ‘M1' in Singapore and ‘MTCE' in Iran (Esfahan).
The Group's, including its subsidiaries and associates, has over 120 million mobile subscribers in Asia. The Group revenue for 2009 was RM13.1 billion. The Group provides employment to over 25,000 people across Asia. Axiata's vision is to be a regional champion by 2015 by piecing together the best throughout the region in connectivity, technology and people, uniting them towards a single goal: "Advancing Asia".
Axiata was awarded the 'Frost & Sullivan 2009 Asia Pacific ICT Award' for 'Best Telecom Group'.
This document is only addressed to, and directed at, persons in the United Kingdom in circumstances where section 21(1) of the Financial Services and Markets Act 2000 of the United Kingdom (the “FSMA”) does not apply or to persons to whom this document may otherwise lawfully be communicated. As such, this communication is made only to, and is directed only at, (a) persons falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (the “Order”) who have professional experience in investments of this type, or (b) high net worth entities, and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(1) of the Order, or (c) persons falling within Article 38 of the Order who are in the business of placing, or arranging the placing of, promotional material, or (d) persons falling within Article 47 who are in the business of disseminating information or other persons to whom it may otherwise lawfully be communicated, (all such persons together being referred to as “relevant persons”). No persons other than relevant persons should rely on the contents of this document nor make any application, offer or other investment decision in relation to the offering in connection with which this document has been prepared.
In connection with the issue of the Notes, Morgan Stanley & Co. International plc (the “Stabilising Manager”) (or any person acting on behalf of the Stabilising Manager) may, to the extent permitted by applicable laws, over-allot or effect transactions with a view to supporting the market price of the Notes at a level higher than that which might otherwise prevail for a limited period. However, there is no assurance that the Stabilising Manager (or any persona acting on behalf of the Stabilising Manager) will undertake stabilisation action. Any stabilisation action may begin on or after the date on which adequate public disclosure of the terms of the offer of the Notes is made and, if begun, may be ended at any time, but it must end no later than the earlier of 30 days after the issue date of the Notes and 60 days after the date of the allotment of the Notes. Any stabilisation or over-allotment must be conducted by the Stabilising Manager (or any person acting on behalf of the Stabilising Manager) in accordance with all applicable laws and rules.
This document is not an offer of securities for sale or distribution, directly or indirectly, in or into the United States. The Notes have not been and will not be registered under the Securities Act or the laws of any state of the United States. Consequently, the Notes may not be offered, sold or otherwise transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws.