TM to buy back dollar bonds

TELEKOM Malaysia (TM) (4863), the country's dominant fixed-line services provider, plans to buy back up to US$150 million (RM505.50 million) worth of bonds from investors as it seeks to reduce foreign borrowings, the company said yesterday.

TM has issued an invitation for tender to investors on US$300 million (RM1.01 billion) of notes due 2010 and US$500 million (RM1.69 billion) of notes due 2014, it said in a filing with the stock exchange.

The 2014 notes are listed on both the Labuan International Financial Exchange and Luxembourg Stock Exchange while the 2010 notes are listed on the Luxembourg Stock Exchange, it said.

TM said the buyback is part of the company's efforts to reduce its foreign debts following a 2008 demerger.
TM spun off its mobile phone operations as well as its regional assets in the demerger, keeping just the domestic fixed-line voice, data and broadband business.

The company's focus on the domestic market "meant that it would no longer require foreign currency borrowings and would have to take steps to minimise its exposure to foreign currency risk," it said. - Reuters