Indonesian mobile operator Bakrie Telecom has issued approximately 1.5 billion shares at Rp265 (US$0.03) each to affiliated investment company Bakrie Global Venture, allowing it to raise Rp407bn (US$42.7m).
This move is aimed at repaying its maturing…
Indonesian mobile operator Bakrie Telecom has issued approximately 1.5 billion shares at Rp265 (US$0.03) each to affiliated investment company Bakrie Global Venture, allowing it to raise Rp407bn (US$42.7m).
This move is aimed at repaying its maturing debt and comes a month after the company signed a US$50m loan with Credit Suisse.
In July, 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 pay Rp650bn (US$68.8m) worth of facilities due in September.
By mid-June, Bakrie had only secured Rp150bn (US$15.8m) from Bakrie Global Venture, Bakrie’s finance director Jastiro Abi was quoted as saying.
Although the loan secured with Credit Suisse and the funding from the affiliated company would have been enough to repay most of the Rp650bn debt, the company was still seeking to raise up to Rp754bn (US$79.8m) from a rights issue, it was reported at the time.
