KUALA LUMPUR, Nov 13 — Telecommunication company Axiata Group Bhd has priced its five-year US$500 million (RM2.19 billion) sukuk at 1.75 per cent over US Treasuries, with a bid-to-cover ratio of close to 3.8 times.

The Islamic bond, issued via its unit, Axiata SPV2 Bhd, will be the company’s second issuance under a multi-currency issuance programme with an aggregate nominal value of US$1.5 billion.

“The sukuk isuance has been assigned ratings of Baa2 and BBB by Moody’s Investors Service Inc and Standard & Poor’s Ratings Services respectively, and will be listed on Bursa Malaysia and the Singapore Exchange Securities Trading Ltd.

“It is structured based on the Shariah principle of Wakala, whereby the underlying assets are airtime vouchers, representing entitlement to a specified number of airtime minutes on the mobile telecommunications network of subsidiaries of Axiata for on-net calls,” it said.

Axiata also said that the issuance, with a final field of 3.47 per cent, has attracted Islamic and conventional investors, ranging from asset management companies to sovereign wealth funds, with participation from more than 170 accounts.

Group chief financial officer Chari TVT said Axiata’s sukuk issuance saw strong cross-border participation from a wide and diverse base of investors, with 58 per cent from Asia, 22 per cent Europe and 20 per cent from Middle East. — Bernama