Indosat is seeking at least Rp3.6trn (US$315.3m) to refinance and repay debt this year, as the telecoms and satellite operator talks with local state-owned bank Bank Rakyat Indonesia (BRI) about managing a new bird.
Local reports earlier indicated…
Indosat is seeking at least Rp3.6trn (US$315.3m) to refinance and repay debt this year, as the telecoms and satellite operator talks with local state-owned bank Bank Rakyat Indonesia (BRI) about managing a new bird.
Local reports earlier indicated that the company is negotiating with several banks to raise financing.
A spokesperson declined to confirm the information but pointed to the fact that Indosat has Rp6trn (US$525m) of debt maturing in 2014, adding that Rp2.4trn is already close to being secured via a stake sale and a loan.
The operator sold its 5% stake in local towerco Tower Bersama a few days ago for Rp1.39trn (US$123m) through an accelerated book-built offering. It expects to sign a Rp1trn (US$87.5m) loan soon.
In an interview with SatelliteFinance earlier this year, Indosat CEO Alexander Rusli said some of the debt due in 2014 would be refinanced while the rest would be repaid using cash generated from its operations.
In talks with bank over new bird
Indosat is still talking to BRI about managing a new satellite, after the bank earlier this year signalled its intention to have its own bird and launch it at 150.5E, where Indosat’s Palapa-C2 is currently operating from.
A spokesperson for Indosat told SatelliteFinance that discussions between the operator and the bank are ongoing to decide whether the new satellite should be managed by either Indosat or BRI, or through a joint cooperation. A decision will need to be approved by the Indonesian government, which will issue the licence.
Indosat is in the process of replacing Palapa-C2 with Palapa-E, which is being built by Orbital Sciences and is due to be launched in 2016. C2 has been positioned in the slot since 1996 and is therefore continuing to operate beyond its expected lifetime. Indosat also operates Thales Alenia Space-built Palapa-D at 113E.
