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Malaysian operator is in the process of acquiring Nepalese mobile operator from TeliaSonera.
Axiata on Wednesday announced it has priced a US$500 million (€451 million) bond that will part-finance its planned acquisition of Nepalese mobile operator Ncell.
The Malaysian operator agreed to acquire a 60.4% stake in Ncell late last year in a deal worth US$1.37 billion.
The stake is currently owned by TeliaSonera, which is in the process of exiting its various operations in Eurasia.
The deal includes a related transaction that will see Axiata acquire an additional 19.6% in Ncell, giving it 80% overall.
Axiata’s latest bond issue is a Sukuk issuance, essentially an Islamic bond that complies with Sharia law. It is the telco’s third under a broader $1.5 billion Sukuk programme that dates back to mid-2012.
In a statement, the operator said it attracted interest from a diverse group of Islamic and other investors, comprising asset management companies, financial institutions, insurance companies, and sovereign wealth funds, with participation from 64 accounts.
"We are pleased that investors are supportive of our aspirations as a regional telecommunications champion," said Dato’ Sri Jamaludin Ibrahim, Axiata’s president and group CEO.
"Through Ncell, Axiata will be entering the fast-growing brownfield market of Nepal with a controlling stake of its number one telecom operator. As a rare and opportunistic asset, Ncell would be immediately accretive to Axiata’s financials when consolidated," he said. "At the same time, Axiata’s regional footprint will expand to a total of 10 countries in Asia, strengthening its position to further unlock shareholder returns and sustain long-term growth."
