Indonesian mobile operator Bakrie Telecom has signed a US$50m loan with Credit Suisse to help refinance its maturing debt, the company said in a notice to the Indonesia Stock Exchange.
A few days ago, the spectre of a default on its debt repayment had…
Indonesian mobile operator Bakrie Telecom has signed a US$50m loan with Credit Suisse to help refinance its maturing debt, the company said in a notice to the Indonesia Stock Exchange.
A few days ago, the spectre of a default on its debt repayment had been raised after it was revealed that Bakrie had yet to get more funding to repay Rp650bn (US$68.8m) worth of facilities due in September.
By mid-June, Bakrie had only raised Rp150bn (US$15.8m) from affiliated investment company Bakrie Global, said Bakrie’s finance director Jastiro Abi.
Although the loan secured with Credit Suisse and the funding from Bakrie Global would now be enough to repay most of the Rp650bn debt, the company is reportedly also seeking to raise Rp754bn (US$79.8m) from a rights issue.
According to the Jakarta Post, the issue could take place in August.
