JAKARTA (TheInsiderStories) - Publicly listed cellular operator, PT XL Axiata Tbk (IDX: EXCL) offered five series Sukuk Ijarah Rp3.5 trillion (US$263.15 million) with coupon rates of between 7.25 percent to 9.50 percent.
Mandiri Sekuritas acting as the underwriter of the Sukuk offering. Following is the details of the Sukuk offering:
| Bond Name | Sukuk Ijarah Berkelanjutan I XL Axiata Tahap II Tahun 2017 |
| Rating | Fitch Rating Indonesia : AAAidn |
| Tenor &
Indicative Yield |
Series A, with tenor of 370 days: 7.25% - 7.75%
Series B, with tenor of 3 years : 8.00% - 8.50% Series C, with tenor of 5 years: 8.40% - 9.00% Series D, tenor of 7 years : 8.50% - 9.25% Series E, with tenor of 10 years : 8.75% - 9.50% |
| Issuance size target | Rp 3.5 trillion |
| Book Building Period | 13 March 2017 – 27 March 2017 |
| Payment Date | 20 April 2017 (tentative) |
The proceeds of the Sukuk offering will be used to expand its business and strengthen its networks.
The company is currently expanding its mobile data business through 3R strategy, namely Revamp, Rise and Reinvent. Through this strategy, the company is transforming into a data-based mobile data provider.
President Director of XL Dian Siswarini said in 2016, the company focused on increasing its coverage area and network quality for data. With the completion of balance sheet management and the achievement of cost efficiency, the company aims to further develop its business in 2017 on a stronger foundation.
At end 2016, XL has 29 million smartphone subscribers, increased 64% from previous year. Its 4G service has now expanded to 100 cities. Total traffic of XL network has also increased 162% year on year in 2016, supported by a rise in data traffic.
In 2016, the company booked net profit of Rp376 billion, up from Rp25 billion in 2015, partly driven by foreign exchange gains and the sale of telecom towers in the period.
XL’s subscribers added 1.5 million in 2016 to 46.5 million, or up 11% from previous year. ARPU rose to Rp35,000 in 2016, up 3% from Rp34,000 in previou syear. (*)