Dialog : to Raise MYR3.0 Billion via Islamic Bond to Fund Capex, Debt Repayment

By Chester Tay

Dialog Group Bhd. intends to raise up to 3.0 billion ringgit ($720.5 million) via an Islamic bond issuance to fund investments, acquisitions, capital expenditure and debt repayment.

The sukuk program, which has a perpetual tenure, gives Dialog the flexibility to issue senior Islamic medium-term notes and subordinated perpetual Islamic notes, the oil and gas engineering services provider said in a stock exchange filing Friday.

Dialog said the senior Islamic medium-term notes have been assigned an initial rating of AA2 by RAM Rating Services Bhd., while the subordinated perpetual Islamic notes have been assigned an initial rating of A1 by RAM. Both ratings carry a stable outlook.

AmInvestment Bank Bhd. and CIMB Investment Bank Bhd. are the joint principal advisers, joint lead arrangers and joint lead managers for the sukuk program. Meanwhile, AmBank Islamic Bhd. and CIMB Islamic Bank Bhd. are the joint Shariah advisers.

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