1. INTRODUCTION

On behalf of Telekom Malaysia Berhad (“TM”)’s Board of Directors, AmInvestment Bank Berhad (“AmInvestment Bank") and Maybank Investment Bank Berhad (“Maybank IB”) are pleased to announce that TM had on 28 September 2018 lodged with the Securities Commission Malaysia (“SC”) for the proposed establishment of the Sukuk Wakalah Programmes under SC’s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework.

2.DETAILS OF THE SUKUK WAKALAH PROGRAMMES

The ICP Programme and the IMTN Programme, which have respective tenures of seven (7) and thirty (30) years from the date of first issuance, have been assigned short-term rating of P1 and long-term rating of AAA respectively by RAM Rating Services Berhad.

The tenure of each ICP to be issued under the ICP Programme shall be one (1), two (2), three (3), six (6), nine (9) or twelve (12) months or any other tenure which is not more than twelve (12) months to be agreed upon, provided that the ICP matures prior to the expiry of the ICP Programme.

The tenure of each IMTN to be issued under the IMTN Programme shall be more than one (1) year and up to thirty (30) years, provided that the IMTN matures prior to the expiry of the IMTN Programme.

Both the ICP and IMTN shall collectively be referred to as the “Sukuk Wakalah”.

The proceeds from the issuance of the Sukuk Wakalah shall be utilized by TM and its subsidiaries for their capital expenditure and business operating requirements, which shall be Shariah-compliant. For the avoidance of doubt, TM can on-lend the proceeds of the Sukuk Wakalah to its subsidiaries via Shariah-compliant facilities for the afore-mentioned purposes, which shall be Shariah-compliant.

3.RATIONALE FOR THE SUKUK WAKALAH PROGRAMMES

The Sukuk Wakalah Programmes shall provide TM with the flexibility to manage its fund-raising exercise and to have an alternative access to debt funding, in addition to conventional bank borrowings.

4.INTEREST OF DIRECTORS AND/OR MAJOR SHAREHOLDERS AND PERSONS CONNECTED WITH THEM

None of TM’s Directors, major shareholders and/or persons connected to them has any interest, direct or indirect, in the Sukuk Wakalah Programmes.

5.ADVISERS

AmInvestment Bank and Maybank IB are the Joint Principal Advisers, Joint Lead Arrangers and Joint Lead Managers for the Sukuk Wakalah Programmes while AmBank Islamic Berhad and Maybank Islamic Berhad are the Joint Shariah Advisers for the Sukuk Wakalah Programmes.

This announcement is dated 1 October 2018.