Axiata Group prices US$158.03 million yuan-denominated Sukuk (By IFN)

Wednesday 12^th September 2012

MALAYSIA: Telecommunications firm Axiata Group priced a CNY1 billion (US$158.03 million) Sukuk Wakalah on the 11th September 2012, offering a profit rate of 3.75% for the two-year notes. The issuance, Axiata’s first Chinese yuan-denominated offering, also represents the first series of its multi-currency Sukuk program of up to US$1.5 billion set up in July this year. Initial price guidance for the offering was set at 4%, before being revised to 3.75-3.85% prior to final pricing, as investors subscribed to CNY3.5 billion (US$553.12 million)-worth of the notes. Following the strong demand, the deal was upsized from CNY500 million (US$79.02 million). Axiata said that the Sukuk is expected to be listed and quoted on Bursa Malaysia and on the Singapore Exchange on the 19th September. The offering is backed by airtime vouchers representing entitlement to a specified number of airtime minutes. The transaction was arranged by CIMB Bank (Labuan), HSBC Amanah Malaysia and Merrill Lynch (Singapore). Hong Kong investors were reportedly allocated the majority of the offering, at 55%, followed by Singapore investors (28%) and Malaysian investors (13%), with the remainder allocated to European and other investors. Fund managers received 62% of the offering, while banks, private banks and companies were allocated 62%, 22% and 14%, respectively.