Photo by Shahrin Yahya/The Edge

KUALA LUMPUR (Aug 29): Axiata Group Bhd (KL:AXIATA) is offering up to US$200 million (RM864.75 million) to buy back outstanding medium-term notes (MTNs) issued by its wholly owned subsidiary Axiata SPV5 (Labuan) Ltd, which are due in 2050.

In a filing with the stock exchange on Thursday, Axiata announced that it had initiated an invitation to eligible holders of its outstanding US$1 billion MTNs, which are listed on the Singapore Exchange. The bought-back notes will be retired and cancelled.

Eligible holders can submit their notes for purchase according to the terms outlined in the tender offer memorandum dated Aug 29, 2024, available at https://projects.sodali.com/axiata.

The offer will expire at 5am on Sept 27, 2024, or at any other date and time that Axiata SPV5, at its sole discretion, may extend.

"The offer is part of our efforts to reduce our gross debt balance, lower associated interest costs, and enhance the capital structure by allocating surplus cash towards the payment of the notes," Axiata said.

At the noon break on Thursday, Axiata's share price traded nine sen or 3.66% higher at RM2.55, giving it a market capitalisation of RM23.41 billion.