Indonesian telecoms and satellite operator Indosat plans to issue Rp10trn (US$830.6m) worth of bonds by early December to help pay licence fees and debt that matures next year.
Around a third of the proceeds will go towards the licence fees while the…
Indonesian telecoms and satellite operator Indosat plans to issue Rp10trn (US$830.6m) worth of bonds by early December to help pay licence fees and debt that matures next year.
Around a third of the proceeds will go towards the licence fees while the rest will pay debt due 2015, which as of June this year stood at around Rp4.1trn (US$400m).
BCA Sekuritas, DBS Vickers Securities Indonesia, Danareksa Sekuritas, HSBC Securities Indonesia and Mandiri Sekuritas have been hired as underwriters.
The bond is being issued under the company’s two-year shelf registration programme.
Indosat plans to first price a batch of notes worth Rp2.5trn (US$207.4m), of which Rp300bn (US$25m) will be in sukuk.
The operator is also understood to be in talks with several banks over a US$450m revolving credit facility to help pay down debt.
Meanwhile, Indosat has been considering offloading 7,500 towers to help cut costs in Indonesia’s crowded mobile market, where it is one of eight players.
The company recently posted consolidated revenues for the six months to 30 June 2014 down 0.8% on the year to Rp11.6trn (US$957m). EBITDA also fell 5.3% to Rp5trn (US$513m).
