JAKARTA, 21 April 2017 - PT Tower Bersama Infrastructure, Tbk. (IDX:TBIG) announced that it has closed its Continuous Rupiah Bond II Phase II Year 2017 (TBIG Bond II Phase II or 2020 IDR Notes).
The bonds have a total issuance size of Rp700 billion at a fixed interest rate of 8.75% for a tenor of 3 years and will have quarterly coupon payments. The 2020 IDR Notes will constitute senior unsecured obligations of TBIG.
The use of proceeds will be to partially repay the company’s existing financial liabilities, in particular Facility B of its credit facilities.
The rupiah bonds have obtained a local AA- rating from Fitch Indonesia and will be listed on the Indonesian Stock Exchange on 25 April 2017.
Total debts of the company as of Dec. 31, 2016, valuing USD loans at their hedged exchange rate, was Rp17,109 billion and gross senior debt was Rp9,451 billion while cash balances were Rp365 billion, resulting in net debt of Rp16,744 billion and net senior debt of Rp9,086 billion.
Using the 4th quarter 2016 annualized EBITDA, net debt to EBITDA ratio was 5.1x, giving TBIG ample borrowing headroom based on the financial covenants of not more than 6.25x debt to annualized EBITDA at the bond level.
“This initial size for this bond offering was Rp500 billion but given the strong local demand, we were able to upsize it to Rp700 billion. We hope to continue to access the Rupiah bond market on a regular basis,” commented Helmy Yusman Santoso, CFO of TBIG.
“This year, we have again demonstrated our ability to tap both the bank and bond markets. We executed USD500 million of bank loan facilities last month and have now accessed the Rupiah bond market. We are pleased with the continued interest and support from our credit providers,” added Hardi Wijaya Liong, CEO of TBIG. (*)