Indonesian mobile carrier Bakrie Telecom has repaid Rp650bn (US$68.8m) worth of bonds due yesterday (4 September), thereby steering away from defaulting.
To do so, the company used a US$50m loan secured with Credit Suisse and a Rp557bn (US$58.2m)…
Indonesian mobile carrier Bakrie Telecom has repaid Rp650bn (US$68.8m) worth of bonds due yesterday (4 September), thereby steering away from defaulting.
To do so, the company used a US$50m loan secured with Credit Suisse and a Rp557bn (US$58.2m) non-pre-emptive rights issue to affiliated investment company Bakrie Global Venture.
Yesterday, the Indonesian stock exchange decided to suspend the operator’s stock and bond trading following market speculation on a potential debt default.
This came after Bakrie had to delay transferring the money for the bond repayment to Indonesian custodian agency KSEI by one day because of a public holiday in New York earlier in the week.
Standard & Poor’s has raised its long-term corporate credit on Bakrie to ‘B-’ from ‘CCC+’, saying the outlook is stable. “We upgraded [Bakrie] because the company does not have any significant debt maturing in the next 12 months,” the ratings agency said.
