Sri Lanka’s Axiata to sell Rs50bn ‘Sukuk’ bond

Nov 01, 2012 (LBO) – Sri Lanka’s Dialog Axiata, a unit of Malaysia Axiata, said it was planning to sell a Malaysian Ringgit denominated ‘Sukuk’ Islamic financial instrument to raise about 51 billion rupees (366 million US dollars). The proposed ‘Sukuk Murabahah’ programme for 1.2 billion Malaysian ringgit will have a tenor of 15-years.

The funds will be used to re-finance existing debt and to finance capital expenditure and working capital, Dialog Axiata said in a stock exchange filing.

The firm said it will seek regulatory approval for the deal and it will depend on market conditions and interest rates whether the firm will eventually go ahead with the deal.