Binariang Completes Refinancing of Maxis Buyout
Malaysia's Binariang GSM says that it has successfully refinanced the MYR20 billion (US$6.1 billion) bridge loan it took to fund the buyout of the country's largest mobile operator Maxis Communications last year.
The bridge loan was refinanced by the largest local currency corporate bond deal in emerging Asia comprising MYR12.05 billion nominal value of medium-term notes, MYR300 million nominal value of commercial papers or Senior Sukuk and MYR3.02 billion nominal value of junior debt or Junior Sukuk as well as a US$1.2 billion Syndicated Term Loan Facility.
Both the Senior Sukuk and the Junior Sukuk were issued under the Shariah principle of Musyarakah with the Senior Sukuk being issued pursuant to a MYR2.0 billion Islamic Commercial Paper Program and a MYR19.0 billion Islamic Medium-Term Notes Program put in place by Binariang.
The Senior Sukuk is Malaysia's largest corporate bond issue and one of the largest Asian corporate bond issues ex-Japan. It is also Malaysia's largest-ever Islamic private debt securities issuance; further cementing the country's leading position as an international Islamic financial center. Likewise, the US$1.2 billion Loan Facility is also one of the largest-ever USD-denominated loan syndicated in Malaysia.
Nazir Razak, Group Chief Executive of CIMB Group, said: "We are very pleased to see that a financing of this size has been so well-received, both onshore and offshore, at a time of turbulence in global credit markets. In addition, the ability to raise more than MYR15.0 billion of the refinancing in ringgit is clear evidence of the depth and strength of the Malaysian debt capital market."
Posted to the site on 8th January 2008