Sri Lanka’s Dialog Axiata’s Board of Directors has approved the proposed establishment of a Malaysian Ringgit denominated Islamic Medium Term Note Programme, under the Shariah principle of Murabahah.
The value of the proposed move is Ringgit Malaysia Rs. 1.2 billion in nominal value with a tenure of 15 years in Malaysia.
Pursuant to the above, the company may, under the Sukuk programme issue Sukuk Murabahah from time to time involving selected Shariah compliant commodities.
The company says, it will utilize the proceeds raise from the Sukuk Murabahah to refinance of existing debt and Sukuk issued under the Sukuk Program.
It will also pay fees and expenses in connection with the refinancing of the existing debt and the Sukuk program.
Dialog will use it to fund investments, cover operational expenses and capital expenditure and also for working capital and other corporate and funding purposes.
The proposed move is subjected to regulatory approval, both in Sri Lanka and Malaysia.
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