KUALA LUMPUR (Aug 10): Axiata Group Bhd announced today the proposed issuance of US$1.5 billion (RM6.29 billion)-equivalent Euro medium-term note (EMTN) programme to mainly refinance its debts and to fund its capital expenditure.

The EMTN programme, to be issued by Axiata SPV5 (Labuan) Ltd, has been assigned a rating of BBB+ by Standard & Poor Rating Services. Axiata is still procuring a rating from Moody's, which has assigned issuer rating of Baa2(s) to the company.

CIMB has been appointed the sole principal adviser for the EMTN Programme, said Axiata in a filing.

Meanwhile, the arrangers and dealers comprise CIMB, Citigroup Global Markets Ltd, Standard Chartered Bank, and UBS AG (Singapore branch).

The notes may be listed on the Singapore Exchange, or other competent authorities to be agreed between Axiata and the relevant dealer.

Shares in Axiata rose four sen or 1.27% to close at RM3.19, valuing the group at RM29.25 billion.

As at end-March 2020, Axiata's short-term debts stood at RM9.05 billion while long-term liabilities were at RM8.87 billion. Its net gearing stood at 0.76 times.