Indonesia’s largest mobile operator Telkomsel is looking to issue a US$200m bond, the proceeds of which will reportedly be used to finance its capex.
President director Alex Janangkih Sinaga told local media that approval for the offering will be…
Indonesia’s largest mobile operator Telkomsel is looking to issue a US$200m bond, the proceeds of which will reportedly be used to finance its capex.
President director Alex Janangkih Sinaga told local media that approval for the offering will be sought at its parent Telkom’s next annual general meeting on 4 April.
Telkomsel and Telkom were not immediately available for comment.
In December last year, Telkom dismissed local reports suggesting it could list Telkomsel. However, the state-owned company confirmed it was looking for a strategic partner for its tower subsidiary Mitratel.
A year ago, Telkomsel received approval from the country’s supreme court to reverse a lower court’s bankruptcy order. The telco had been declared bankrupt following a lawsuit filed by Prima Jaya Informatika, a mobile phone SIM card distributor, which claimed it was owed Rp5.3bn (US$557,000).
An unrelated creditor had also complained that Telkomsel had not repaid its debt. Under Indonesian laws, a company can be declared bankrupt if it fails to repay two creditors, regardless of the amount owed or the company’s financial profile.