Binariang GSM Sdn Bhd has successfully refinanced the RM20 billion bridge loan it took to fund the buyout of Maxis Communications Bhd in June 2007, via the largest local currency corporate bond deal in emerging Asia.
The refinancing of the bridge loan comprises RM12.05 billion nominal value of medium term notes, RM300 million nominal value of commercial paper (collectively the senior sukuk), RM3.017 billion nominal value of junior debt (junior sukuk) and a US$1.2 billion (RM3.96 billion) syndicated term loan facility.
Both the senior and junior sukuk were issued under the syariah principle of musyarakah with the former issued pursuant to a RM2 billion Islamic commercial paper programme and a RM19 billion Islamic medium term notes programme put in place by Binariang.
Announcing the corporate bond deal in a press release yesterday, it said the senior sukuk was Malaysia’s largest corporate bond issue and one of the largest Asian corporate bond issues ex-Japan and also Malaysia’s largest Islamic private debt securities issuance.
The junior sukuk is the largest hybrid instrument issued by a Malaysian corporate and subscribed by Saudi Telecom Company and Shield Estate NV, an entity affiliated to T Ananda Krishnan, it said, adding that the use of such an innovative instrument, which has been granted full equity credit by the rating agency, is reflective of the maturity and sophistication of the country’s debt capital market.
The loan facility in the refinancing is also the largest US dollar denominated loan syndicated in Malaysia at US$1.2 billion, it added.
CIMB Investment Bank, RHB Investment Bank Bhd, Aseambankers Malaysia Bhd, ABN AMRO Bank Bhd, OCBC Bank Malaysia Bhd and AmInvestment Bank Bhd were the joint lead managers for the senior sukuk. CIMB and ABN AMRO also acted as joint principal advisors for the senior sukuk while CIMB was the sole principal advisor for the junior sukuk.
The mandated lead arrangers for the loan facility were Bank of Tokyo Mitsubishi UFJ, DBS Bank Ltd, Sumitomo Mitsui Banking Corporation, The Hong Kong & Shanghai Banking Corporation, ABN AMRO, Standard Chartered Bank, ING Bank NV, Overseas-Chinese Banking Corporation, Mizuho Corporate Bank, West LB AG and Caylon Corporate and Investment Bank.
CIMB Group chief executive Datuk Nazir Razak 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.”
“The ability to raise more than RM15 billion of the refinancing in ringgit is clear evidence of the depth and strength of the Malaysian debt capital market,” he added.