Malaysian mobile telecommunications company, Maxis Communications is set to issue up to RM2.45bn ($810m) in the first issue of its Musharakah Sukuk program. The unrated first issue will have a maturity period of 10 years while the entire program will have a tenor of 30 years.
According to lead arranger CIMB, RM1.45bn ($480.5m) will be used to refinance existing loans while the remaining RM1bn ($330.7m) will be used for capital expenditure and other operational purposes.
Maxis confirmed to The Islamic Globe that this was the first time it would be issuing Islamic papers. The company has the biggest mobile subscriber base in Malaysia, serving 14m mobile customers by the end of 2010. The firm is run by Malaysian-Tamil businessman Ananda Krishnan an entrepreneur with interests in media, satellite, oil & gas, real estate, power and gambling. Saudi Telecom owns a 25% stake in Maxis.