Digi maintains commitment to manage conventional debt within 33% Shariah threshold

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Press Release
November 22, 2017
https://digi.com.my/media/articleURLhereWhichCanbeReallyLong

Subang Jaya, 23 November 2017 - Digi.Com Berhad (Digi) today reaffirmed its commitment to manage its total conventional debt over total assets within the 33% Shariah threshold. Following the establishment of its Sukuk Programmes in Q2 2017, Digi has regularised its total conventional debt over total assets to 30%.

Digi further explained that its plan to set up an Islamic funding facility dates back to Q4 2016, notwithstanding its obligation to a lump sum, one-time fee payment to the Government for the 900Mhz and 1800Mhz spectrum amounting to RM598.5 million due on 1 November 2016, which enlarged its conventional debt exposure temporarily to RM2.3 billion at the end of financial year 2016.

In keeping with the Company's commitment to tap on prospective Islamic capital and debt markets, Digi Telecommunications Sdn Bhd (DigiTel), a wholly owned subsidiary of Digi has on 14 April 2017, established the Islamic Medium Term Notes (''IMTN'') Programme of up to RM5.0 billion in nominal value and an Islamic Commercial Papers (''ICP'') Programme of up to RM1.0 billion in nominal value, with a combined limit of RM5.0 billion in nominal value (''Sukuk Programmes''). On the same day, DigiTel issued the first series of IMTN of RM900.0 million in support of the Islamic Debt Capital Markets, and subsequently on 20 April 2017 issued an ICP amounting to RM5.0 million in nominal value for a tenure of 1 month.

These developments were disclosed in Digi's second and third quarter 2017 financial statements. Digi continues to deliver a solid balance sheet, with a healthy net debt to EBITDA ratio of 0.7x. The Company is committed to maintain its net debt ratio below 1.0x for the financial year closing 2017.