Telekom Malaysia to Repurchase Sukuk Following Approval from Islamic Bondholders

Telekom Malaysia (TM) issued a statement on the 8th of February 2021, noting its intent to repurchase all outstanding Islamic Medium-Term Notes (IMTN) before they mature. These Islamic bonds were initially issued at a nominal value of up to MYR 2 billion.

The MTNs comprise seven tranches with coupon rates between 3.93%-4.50% and maturities ranging and the 25th of June 2021 and the 23rd of June 2023. According to the statement, TM will hold an extraordinary general meeting on the 1st of March 2021 to obtain approval from the Islamic bond-holders for the buy-back.

The statement revealed that the outstanding Sukuk will be purchased from the Sukukholders in full for a cash consideration, which is based on the repurchase yield for each tranche of the outstanding IMTN. Telek...