Indosat, the Indonesian mobile operator owned by Qatar Telecom (QTel), has announced plans to issue a mix of conventional and Islamic (sukuk) bonds worth a total Rp2.5trn (US$271m).
The bonds will be issued at a fixed rate and have a maturity of 10…
Indosat, the Indonesian mobile operator owned by Qatar Telecom (QTel), has announced plans to issue a mix of conventional and Islamic (sukuk) bonds worth a total Rp2.5trn (US$271m).
The bonds will be issued at a fixed rate and have a maturity of 10 years.
QTel said 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 (Persero) is acting as trustee.
Legal advice is being provided by Assegaf Hamzah and Partners, Titik Poerbaningsih Adi Warsito is acting as notary, and Ernst & Young was hired as independent auditor.
A Qtel spokesperson said: “In line with previous Rupiah bond issuance, Indosat would like to have the widest possible investor participation by structuring both a conventional and an Islamic Sukuk tranche in order to tap the different pools of Rupiah liquidity in Indonesia.”
Rating agency Pefindo, appointed by Indosat, issued a rating of ‘AA+’ for the bonds.
In February, Indonesia’s Tower Bersama Infrastructure confirmed it would buy 2,500 towers from Indosat in a deal valued at US$519m.
Indosat, which is 65%-owned by Qtel, has been a regular issuer of Islamic bonds in the past. The telecoms industry has seen an increase in Islamic finance in recent years, characterised by some large and pioneering transactions.
A feature on the subject of Islamic financing will be published in the next issue of TelecomFinance, due out later this week.
