The notes will be issued in 1-year tenor, 2 year-tenor, and 3-year tenor with interest rates of 7.25-8 percent, 7.5-8.5 percent, and 7.75 percent-8.75 percent, respectively.
The book building period of the debt instruments started on August 2, 2018, and will end on August 20, 2018. The company is expected to receive the funds on August 29, 2018, as reported by CNBC Indonesia.
Bahana Sekuritas, BNI Sekuritas, Danareksa Sekuritas, CGS-CIMB Sekuritas, and Mandiri Sekuritas serve as underwriter.
Telkom plans to launch its satellite namely Merah Putih on August 7, 2018. Merah Putih will be Indonesia’s biggest satellite that brings 60 active transponders consists of 24 C-Band transponders and 12 Extended C-Band transponder that will serve Southeast Asia. In addition, this satellite brings 24 C-Band transponders that will cover South Asia. This satellite use SSL 1300 platform with 16 years lifetime and expected to replace Telkom 1 that will expire in 2022.
The satellite was flown by a Falcon 9 rocket with a total weight of 5.8 tons, of which 3.8 tons is fuel. Merah Putih satellite is developed by two US companies namely SSL as manufacturer and SpaceX as launching provider.
The satellite launching is expected to strengthen the company’s business. Telkom’s net income fell 28.13 percent to Rp8.83 trillion in the first semester this year from Rp12.1 trillion in the first half last year.
However, the firm booked 0.54 percent growth in revenue to Rp64.36 trillion in the first semester this year from Rp64.02 trillion in the same period last year. The data, internet, and IT service business contributed significantly to Rp32.74 trillion or 50.9 percent of the total company’s income in the first semester this year. It was 20.7 percent higher than its contribution in the first semester last year.
The company’s expenses recorded higher at Rp21.8 percent versus Rp18.4 trillion in the first semester last year.
Telkom recorded Rp201,96 trillion in assets the first semester this year, a 1.75 percent up from Rp198.48 in the first semester last year.
The company also recorded a higher liabilities at Rp103.6 trillion in the first semester this year as against Rp86.35 trillion in the same period last year. It included short-term liabilities of Rp53.7 trillion and long-term liabilities of Rp49.9 trillion.