KUALA LUMPUR, May 11 — Axiata Group Bhd has completed the first-of-its-kind syndicated multi-currency shariah-compliant sustainability-linked financing facilities of US$800 million (about RM3.5 billion)(syndicated financing).
In a statement, the regional telecommunications company said the syndicated financing is the first sustainability-linked Islamic syndicated financing effort undertaken in Malaysia and globally.
Axiata president and group chief executive officer Tan Sri Jamaludin Ibrahim said: “Our commitment towards compliance and sustainability is now further incentivised by direct contribution towards our bottom-line through this innovative financing mechanism that recognises and rewards Axiata for meeting sustainability performance targets.”
He described the signing of the syndicated financing 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,” he said.
The combination of Islamic financing principles coupled with sustainability parametres 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,” he said.
Apart from the diversification of funding options, he said the innovative financing mechanism offered through a shariah-compliant sustainability financing structure serves to enhance Axiata’s liquidity position, particularly during these uncertain times while 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.
He said 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 Bhd 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 Ltd, Labuan Branch; Maybank Islamic Bank Bhd; and MUFG Bank (Malaysia) Bhd. — Bernama
