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Maxis weighs $1.4bn capital raising
16 June 2010
Malaysian operator Maxis is considering raising $1.4bn, half of which will be used for capital expenditure
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Maxis
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telecoms finance
IPO
Kuala Lumpur-based Maxis is considering raising $1.4 billion via bonds and bank credit to expand and repay debt, according to reports. The Malaysian company will use $766 million of the proceeds to repay a bridging loan and the remaining for capital expenditure, said CFO Rossana Rashidi told Bloomberg.
The operator needs funds for expansion as it is planning to invest $429 million in 2010 to upgrade its broadband internet network. It will raise the funds within the next three to four months, added Rashidi. The company is reviewing both Islamic and conventional financing and also considering whether to use ringgit, the Malaysian currency, or dollars.
Maxis is looking to expand its 3G network to reach 80% of Malaysia’s population by the year-end. In November 2010, it had raised $3.43 billion in an initial public offering. GTB