The newly-promoted CEO of Telkom Indonesia has said the incumbent is considering issuing bonds this year to finance its capital expenditure.
Alex Sinaga, who took over from Arief Yahya in December after the latter was appointed as the country’s…
The newly-promoted CEO of Telkom Indonesia has said the incumbent is considering issuing bonds this year to finance its capital expenditure.
Alex Sinaga, who took over from Arief Yahya in December after the latter was appointed as the country’s tourism minister, told the Jakarta Post that notes would be offered this year but did not comment on the size or timing.
He also pointed out that Telkom is not expected to face difficulties in raising external funding as its debt-to-equity ratio stands at 35%, compared with an average of 60% for the rest of the Indonesian telecoms industry.
The operator plans to use a mix of loans and bonds to finance half of its Rp23trn (US$1.8bn) capex in 2015. Of those Rp23trn, about Rp10trn will be used to build 12,000 towers for subsidiary Telkomsel, which Sinaga headed before becoming CEO.
He also told the local newspaper that his company would boost its local digital network, by developing transmission cables, fibre-optic networks and satellites, and would expand its international presence.
At the end of November last year, Telkom said it aimed to buy 25%-30% of New Zealand mobile operator 2degrees. It has also been targeting Australia and the Middle East for expansion.
