Indonesian towerco Tower Bersama has priced a Rp740bn (US$62.5m) bond – its first-ever rupiah-denominated offering.
The issue consists of two series: series A is a Rp550bn offering with a 9% fixed interest rate and a 370 day tenure; series B is a…
Indonesian towerco Tower Bersama has priced a Rp740bn (US$62.5m) bond – its first-ever rupiah-denominated offering.
The issue consists of two series: series A is a Rp550bn offering with a 9% fixed interest rate and a 370 day tenure; series B is a Rp190bn offering carrying a 10% fixed interest and a three-year maturity.
The notes, which will be listed on the Indonesian stock exchange, obtained a local AA- rating from Fitch. Half of the proceeds will go towards the partial debt repayment of Tower Bersama’s subsidiaries while the remaining will be used for capex.
Commenting on the transaction, the towerco’s CEO, Hardi Wijaya, said: “This debut rupiah bond offering diversifies our funding sources further. Our initial target issuance size was Rp500bn, but strong demand has enabled us to upsize the issuance to Rp740bn. We hope to continue to tap the rupiah bond market for our future funding requirements.”
The offering forms part of Tower Bersama’s Rp4trn (US$348.2m) bond programme announced a few weeks ago and managed by HSBC, Indo Premier, NISP and UOB Kay Hian.
Tower Bersama owns and operates 9,830 telecommunication sites serving 16,017 tenants as of September. The company is majority owned by Saratoga Capital and Provident Capital.
