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Telekom Malaysia Berhad ("Telekom") and TM Global Incorporated ("TM Global") are pleased to announce that they intend to launch a USD$250 Million Bond (the "Bond") via TM Global.
The transaction is subjected to approvals from the following authorities, all of which have been obtained:-
a) Ministry of Finance;
b) Labuan Offshore Financial Services Authority; and
c) Bank Negara Malaysia.
1. Utilisation of Proceeds
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The proposed utilisation of the net proceeds from the Bond issue shall be on lent to Telekom:-
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i)To refinance certain existing debt and other obligations; and
ii)To meet the general corporate funding requirements of Telekom and its Group of companies ("Telekom Group")
2. Terms of the Bond Issue
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(wholly -owned subsidiary of Telekom Malaysia Berhad incorporated in the Federal Territory of Labuan, Malaysia)
Issuer : TM Global Incorporated.
Guarantor : Telekom Malaysia Berhad
Issue : US$250 Million Bond due 2010 unconditionally and irrevocably guaranteed by Telekom
Interest : The Notes will bear interest at a fixed rate to be determined at pricing date.
Rating : BBB/Baa2 (S&P/Moody's)
Trustee : Noble House International Trust Sdn Bhd in the Federal Territory of Labuan
Governing Law : English Law
3. Rationale of the Issue
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By tapping the international capital markets, the Telekom Group will be able to be competitive in its long term funding. The transaction will also enable the Telekom Group to diversify its funding base.
The availability of the Bond would nonetheless be subject to the completion of the Bond to the satisfaction of the participating institutions and compliance of all the conditions precedent as required under the Bond documentation.
This announcement is not, and is not intended to be, an offer of securities for sale in the United States. The Bond have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States or to a U.S. person absent registration or an applicable exemption from the registered requirements.