Axiata Converts RM2.8 Billion Conventional Term Loans to Islamic Financing
Kuala Lumpur 10th November 2009, Axiata Group Berhad (formerly known as TM International Berhad) (“Axiata”), has successfully converted RM2.8 billion of its conventional term loans to Islamic term financing based on commodity Murabahah structure, in line with the Government's efforts to promote the country as an international Islamic hub.
President and Group Chief Executive Officer Dato' Sri Jamaludin Ibrahim of Axiata said “The conversion is part of a wider streamlining initiative of the Group's debt structure to put us on a stronger financial footing moving forward, as well as Bank Negara's efforts to promote Islamic financing in Malaysia.”
The facility allows the two parties, Axiata and the participating banks, to use tradeable shariah compliant commodities as the underlying assets. The structure, which has been approved by Bank Negara Malaysia's Shariah Advisory Council (SAC), adopts consistent Murabahah concept as applied in the Gulf Cooperation Council (GCC).
Axiata is one of the largest Asian telecommunication companies, focused in high growth low penetration emerging markets. Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India, Singapore and Iran. India and Indonesia are amongst the fastest growing markets in the world. In addition, the Malaysian grown holding company has stakes in non mobile telecommunication operations in Thailand and Pakistan.
The Group's mobile subsidiaries and associates operate under the brand name ‘Celcom' in Malaysia, ‘XL' in Indonesia, ‘Dialog' in Sri Lanka, ‘AKTEL' in Bangladesh, ‘HELLO' in Cambodia and ‘Idea' in India, ‘M1' in Singapore and ‘MTCE' in Iran (Esfahan).
As of December 2008, The Group's, including its subsidiaries and associates, has over 90 million mobile subscribers in Asia. The Group revenue for 2008 was RM11.3 billion. The Group provides employment to over 25,000 people across Asia. Axiata's vision is to be a regional champion by 2015 by piecing together the best throughout the region in connectivity, technology and people, uniting them towards a single goal: Advancing Asia.
Axiata was awarded the Frost & Sullivan 2009 Asia Pacific ICT Award for Best Telecom Group.