Indonesian mobile operator Indosat is considering increasing the size of a planned bond issue because of large investor demand, CFO Curt Stefan Carlsson was quoted telling the Jakarta Globe.
The company was originally seeking to raise Rp2.5trn …
Indonesian mobile operator Indosat is considering increasing the size of a planned bond issue because of large investor demand, CFO Curt Stefan Carlsson was quoted telling the Jakarta Globe.
The company was originally seeking to raise Rp2.5trn (US$270.7m) but this may now be boosted to Rp3trn (US$324.8m), Carlsson reportedly said after an annual shareholders meeting earlier this week.
The bond issue is expected to take place within the next few weeks. Indosat was not immediately available for comment before the press deadline.
In mid-April, the company, which is 65%-owned by Qatar Telecom (Qtel), had said that the Rp2.5trn would be raised via a mix of conventional and Islamic (sukuk) bonds.
The bonds were expected to be issued at a fixed rate and have a maturity of 10 years.
QTel said, at the time, 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 is acting as trustee.
Legal advice is being provided by Assegaf Hamzah and Partners, while Titik Poerbaningsih Adi Warsito is acting as notary, and Ernst & Young was hired as independent auditor.
In February, Indonesia’s Tower Bersama Infrastructure confirmed it would buy 2,500 towers from Indosat in a deal valued at US$519m.
