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Malaysia’s Digi.Com has secured approval to raise 5 billion ringgit ($1.12 billion) through via sukuk (Islamic bond) programs.
The company’s unit Digi Telecommunications will issue the bonds, and the proceeds will be used to finance the company’s capex, working capital and other funding requirements.
In a statement to the local stock exchange, Digi said the company plans to use the funds to invest in data and digital growth opportunities, as well as expanding its LTE-Advanced network, the digitization of the core business as well as investments in spectrum and other strategic assets.
The operator said the sukuk program will allow it to tap into opportunities in the debt capital market with a wider and more diverse base of investors.
Malaysian bond market credit rating service provider RAM Holdings has assigned the sukuk programs a AAA/Stable rating.
Digi.Com is 49% owned by Telenor Asia. The operator reported a net profit of 1.63 billion ringgit in 2016, down 5.2% from the previous year, and its total debt increased by 988 million ringgit to 2.3 billion ringgit, due largely to upfront spectrum costs.
