Telecommunications giant Telekom Malaysia Bhd today signed a RM1.37 billion (US$360) term loan facility to raise funds for the redemption of the company's outstanding euroconvertible bonds prior to maturity, a senior official said.

Mohamad Khir Abdul Rahmad, Telekom Malaysia's chief executive, said the two-year term loan facility would have a floating interest rate based on US dollar Libor.

Telekom inked the deal with four financial groups: HSBC, Standard Chartered Bank, Bank of Tokyo-Mitsubishi and ING.