Indosat, the Indonesian satellite and mobile operator owned by Qatar Telecom (QTel), has announced plans to issue a mix of conventional and Islamic (sukuk) bonds worth a total Rp2.5trn (US$271m).
The bonds will be issued at a fixed rate and have a…
Indosat, the Indonesian satellite and mobile operator owned by Qatar Telecom (QTel), has announced plans to issue a mix of conventional and Islamic (sukuk) bonds worth a total Rp2.5trn (US$271m).
The bonds will be issued at a fixed rate and have a maturity of 10 years.
QTel said that net proceeds would be used for investment and to refinance part of Indosat’s debt. The company had non-current liabilities of Rp21.4trn (US$2.3bn) as of December 2011.
The underwriters of the bond issue are DBS Vickers, Danareksa, HSBC, Mandiri and Standard Chartered. Bank Rakyat Indonesia (Persero) is acting as trustee.
Legal advice is being provided by Assegaf Hamzah and Partners, Titik Poerbaningsih Adi Warsito is acting as notary, and Ernst & Young was hired as independent auditor.
A Qtel spokesperson said: “In line with previous Rupiah bond issuance, Indosat would like to have the widest possible investor participation by structuring both a conventional and an Islamic Sukuk tranche in order to tap the different pools of Rupiah liquidity in Indonesia.”
Indonesian rating agency Pefindo has given the debt a ‘AA+’ rating.
Indosat, which is 65%-owned by Qtel, has been a regular issuer of Islamic bonds in the past, with several sukuk due to mature between 2013 and 2016.
Indosat currently operates the satellites Palapa-D and Palapa-C2, located at 113E and 150.5E respectively and covering Southeast Asia. They both carry C-band and Ku-band transponders.
