Cellco’s Sukuk Ijarah program
In 2021, Cellco Capital (Cellco) successfully established an Islamic medium-term note and Islamic commercial paper program (Sukuk Ijarah program) with an aggregate nominal value of up to RM1 billion (US$236.76 million). Cellco is a special-purpose entity that was set up to raise funds via the Sukuk Ijarah program for Stealth Solutions (Stealth), one of the largest independent telecommunications infrastructure provider companies in Malaysia.
In exchange, Stealth injected operational assets into Cellco, lease payments from which will meet the financial obligations under the Sukuk. The program marked a monumental milestone for the Stealth group of companies in which the Sukuk proceeds of RM520 million (US$123.12 million) will be used to accelerate the acquisition of existing and new telecommunications facilities, bolster fiber integration strategy and ultimately serve as a catalyst to Stealth’s growth and to continue in providing our excellent services of every business.
About Stealth Solutions
Since its beginning, Stealth has been very focused in the telecommunications industry with an emphasis on infrastructure network. Stealth started with project management services and engineering consultancy works before becoming an integrated telecommunications infrastructure provider. Since then, Stealth has expanded the offerings to include towers, energy systems, fiber connectivity, network solutions and managed services as well as project management and consultancy services.
To mark Stealth’s current position in the telecommunications industry, Stealth now owns and leases sizeable telecommunications sites and manages a substantial number of telecommunications sites for other operators respectively.
Cellco’s RM520 million Sukuk issuance received a financial strength rating of ‘MARC-1IS/AAIS’ with a stable outlook from Malaysian Rating Corporation.
Additionally, Stealth also runs portable power generation in meeting the power systems requirement. Stealth’s vision is to be the first choice of mobile network operators (MNOs) and to contribute in transforming Malaysia into a sophisticated nation with modern world-class telecommunications infrastructure and technology. With that, Stealth aims to provide excellent telecommunications services that offer innovative solutions and value for money.
Stealth’s outlook and planning for telecommunications tower industry
The prospects for growth for Stealth in the telecommunications tower industry will continue to be supported by the MNOs’ investments in improving network coverage, and by catering to the growing demand for mobile broadband services including the transition to the 5G network. In this regard, Stealth would benefit from the MNOs’ demonstrated willingness to share network infrastructure to reduce capital costs, leading to a potentially higher tenancy ratio.
Since demand for data applications has exploded tremendously, throughput (speed) and latency have become crucial performance factors. In view of this, for the next coming years, our business expansion plan is to be closely associated with 5G technology, via the Centralized Distributed Radio Access Network (CRAN).The competitive advantages of the CRAN technology are its infrastructure readiness toward 5G’s evolution, reduced data transverse time and cost saving. The development of the CRAN program is targeted within the highly populated areas in consonance with the Malaysian Communications and Multimedia Commission’s recent guideline in promoting smart city digital infrastructures.
One of Stealth’s competitive advantages lies in its ventures of strategic landbank and secure blanket approvals from relevant authorities. With Stealth’s track record in managing the existing towers, Stealth is receiving positive collaboration from strategic peers in selected regions in the Klang Valley, Northern Region, Southern Region, West Malaysia and East Malaysia.
