Axiata Group Bhd (formerly known as TM International Bhd), has converted RM2.8 billion of its conventional term loans to Islamic term financing based on Commodity Murabahah structure.
This is in line with the Government’s efforts to promote the country as an international Islamic hub, it said in a statement.
Its President and Group Chief Executive Officer Datuk Seri Jamaludin Ibrahim said the conversion is part of a wider streamlining initiative of the group’s debt structure to put it 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 participating banks, to use tradable shariah-compliant commodities as underlying assets.
The structure, approved by Bank Negara Malaysia’s Shariah Advisory Council, adopts the Murabahah concept as applied by the Gulf Cooperation Council.
Axiata is one of the largest Asian telecommunication companies focused in high growth low penetration emerging markets, with over 90 million subscribers.
It has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia, with significant strategic stakes in India, Singapore and Iran.
Link: http://www.cibafi.org/NewsCenter/English/Details.aspx?Id=5771&Cat=0
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