15 January 2008
| Type | Announcement |
| Subject | TM COMPLETES ITS RM 1.0 BILLION ISLAMIC SALE AND LEASEBACK TRANSACTION |
| Contents | We forward herewith a press statement released by Telekom Malaysia Berhad today on the above matter:- Telekom Malaysia Berhad (TM) has successfully completed its Islamic Sale and Leaseback transaction that involved the issuance of RM1.0 billion of Islamic Asset Backed Sukuk Ijarah by Menara ABS Berhad (MAB). Citibank Berhad is the Principal Adviser and Sole Lead Arranger for the transaction. The transaction was completed with the sale and purchase of Menara TM, Menara Celcom, TM Cyberjaya Complex and Wisma TM (Taman Desa) to MAB for a total purchase consideration of RM1,000 million. TM has also entered into a 15-year lease agreement under the Ijarah principle. TM and its group of companies will continue to occupy the existing premises. MAB issued 3 classes of Sukuk: Class A totaled RM345 million; Class B RM155 million, while Class C totaled RM500 million. Rating Agency Malaysia Bhd has rated Class A and B, with Class C being un-rated. Dato’ Sri Abdul Wahid Omar, Group CEO of TM said: “At TM, one of our key objectives had been to achieve operating and capital efficiency and towards this end, monetizing non-core assets such as the buildings was an important strategy. We are pleased that this transaction achieved not only our objectives in an effective and efficient manner, but we are also at the same time contributing to the development of the domestic Islamic capital markets by introducing such an innovative and landmark transaction.” TM intends to utilize the proceeds from the transaction for capital management, funding investment, capital expenditure and/or working capital. The transaction does not have any material effect on the share capital, net assets, earnings, gearing and dividend policy of TM. Sanjeev Nanavati, Chief Executive Officer of Citibank Berhad said: “This current transaction is unique in a number of ways. It’s the largest property securitization deal to date in Malaysia. It is based on Syariah principles, and achieves the objective of removing the property assets from the Company's balance sheet. The transaction also creates a significant and unique class of Islamic private debt securities that incorporates the features of both a fixed income instrument as well as an investment in a portfolio of high quality property assets." |
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under Citi’s trademark red arc include Citibank, CitiFinancial, Primerica, Smith Barney and Banamex. Additional information may be found at www.citigroup.com or www.citi.com.
Citi Markets & Banking is the most complete financial partner to corporations, financial institutions, institutional investors and governments in the world. As a global leader in banking, capital markets, and transaction services, with a presence in many countries dating back more than a century, Citi enables clients to achieve their strategic financial objectives by providing them with cutting-edge ideas, best-in-class products and solutions, and unparalleled access to capital and liquidity.
About TM
Telekom Malaysia Berhad (TM), a leading regional information and communications group, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies on Bursa Malaysia with an operating revenue of more than RM16 billion, TM is driven to deliver value to its stakeholders in a highly competitive environment.
The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 13 countries around Asia and globally, TM is focused on sustainable growth in both the local and international markets.
On the Corporate Social Responsibility (CSR) front, the Group has always been a major corporate contributor towards responsible activities in the belief that these practices are a fundamental tenet of good corporate governance. The Group promotes 3 major platforms i.e. education, sports development and community/nation-building. Under education, TM has spent some RM800 million to develop Multimedia University into one of the top universities in Malaysia with more than 20,000 students. TM has also provided scholarships to over 10,000 graduates pursuing academic programs locally and overseas. On the sports front, TM is actively contributing towards the upliftment of football at all levels while under the community/nation-building platform, the Group contributes towards causes that bring value to the community and nation at large.
For further information on TM, visit www.tm.com.my
| Company Name | TELEKOM MALAYSIA BERHAD |
| Stock Name | TM |
| Date Announced | 15 Jan 2008 |
| Category | General Announcement |
| Reference No | TM-080115-51470 |