Indonesian telecoms and satellite operator Indosat has borrowed Rp700bn (US$58.9m) from Bank Negara Indonesia for debt refinancing and capex.
The facility matures in June 2015 and carries a “very competitive” interest rate, a spokesperson for the…
Indonesian telecoms and satellite operator Indosat has borrowed Rp700bn (US$58.9m) from Bank Negara Indonesia for debt refinancing and capex.
The facility matures in June 2015 and carries a “very competitive” interest rate, a spokesperson for the company said. He declined to comment further because another funding facility is being negotiated.
CEO Alexander Rusli was quoted telling local media that Indosat opted for a short-term loan because of high volatility in the local currency.
The operator has Rp6trn (US$525m) of debt maturing this year and Rp2.4trn (US$202m) has already been secured via a stake sale and a loan.
Earlier this year, Indosat sold its 5% stake in local towerco Tower Bersama for Rp1.39trn through an accelerated book-built offering.
In an interview with SatelliteFinance in January, Rusli said some of the debt due in 2014 would be refinanced while the rest would be repaid using cash generated from its operations.
He added: “Basically, we are looking at any opportunity to restructure our debt at the most optimum level possible.”
Separately, Indosat recently scrapped plans to launch a satellite called Palapa-E after losing the operating rights to the 150.5E orbital slot to state-owned Bank Rakyat Indonesia (BRI).
In May, BRI announced it would become the first bank in the world to launch a communications satellite.
Indosat is already operating Palapa-C2 at that same orbital slot. But the bird, which was launched by Arianespace in 1996, has been providing services beyond its expected lifetime.
The company still operates the Thales Alenia Space-built Palapa-D at 113E.
