Binariang GSM partially redeems senior sukuk; corporate exercise still under RAM Ratings' radar

12 September 2012
RAM Ratings has received confirmation that Binariang GSM Sdn Bhd ("BGSM" or "the Group") partially redeemed RM1.06 billion of its Senior Sukuk and prepaid USD6.87 million of its USD-denominated term loan on 30 August 2012, pursuant to the requirements of the Senior Sukuk Trust Deed dated 18 December 2007 and the USD Term Loan Facility Agreement dated 19 December 2007. The partial redemption had been prompted by the sale of BGSM's indirect 5%-stake in Maxis Berhad ("Maxis"). Following the sale, Maxis Communications Berhad, the wholly owned subsidiary of BGSM, now has a direct shareholding of 65% in Maxis.

BGSM's Senior Sukuk consists of a RM19 billion Islamic Medium-Term Notes Programme (rated AA3, with a negative outlook) and a RM2 billion Islamic Commercial Papers Programme (rated P1), of which only RM7.2 billion Senior Sukuk remains outstanding post the above mentioned redemption. There is no outstanding amount under the Commercial Papers Programme. In addition, the Group has a USD900 million Cumulative Non-Convertible Islamic Junior Sukuk (rated A2, with a negative outlook).

BGSM is an investment-holding company with subsidiaries and affiliates that are involved in the Malaysian, Indian and Indonesian cellular telecommunication markets, via Maxis, Aircel Limited ("Aircel") and PT Axis Telekom Indonesia, respectively.

Meanwhile, RAM Ratings is closely monitoring the progress of the Group's corporate-restructuring exercise to decouple Aircel. We have been informed that the Group is in consultation with its advisors to determine and implement an optimal structure to satisfy this objective.

RAM Ratings understands that the corporate exercise, which was initially slated for completion by September 2012, is now targeted to be completed within the next few months once there is further clarity on the New Telecom Policy and other regulatory/policy changes in India that could impact the transaction.

We will continue monitoring developments on these fronts and publish our findings on completion of our review.

Media contact
Lee Chai Len
(603) 7628 1192

© Press Release 2012

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