PT Indosat Ooredo Tbk (IDX: ISAT), issued local bond and SUKUK Ijarah with total value of Rp3.38 trillion (US$238.03 million) - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesian telecommunication company, PT Indosat Ooredo Tbk (IDX: ISAT), issued local bond and SUKUK Ijarah with total value of Rp3.38 trillion (US$238.03 million), the management said on a written statement on Thursday (07/04). In details, the funding consists of conventional bonds Rp2.58 trillion and Rp794 billion as a SUKUK Ijarah.

Most of the funds will be used to pay off debts to several banks such as PT Bank CIMB Niaga Tbk (IDX: BNGA) worth Rp200 billion and PT Bank Permata Tbk (IDX: BNLI) Rp900 billion. Then, loan of PT Bank HSBC Indonesia Rp640 billion, JPMorgan Chase Bank Rp300 billion, and PT Bank ANZ Indonesia Rp250 billion. In total the company aimed to pay bond and loans amounting to Rp1.02 billion.

The sustainable bonds consists of four series. Series A with an emission value of Rp1.11 trillion with the coupon interest 8.25 percent and tenor 370 days. Series B with an emission value of Rp1.33 trillion with 9 percent interest and tenor three years.

Then, Series C with an emission value of Rp67 billion with an coupon interest 9.25 percent and tenor 5 years. And, Series D with worth of Rp75 billion, 10 percent interest with tenor 10 years.

Ramdhan Ario Maruto, Associate Director of Fixed Income at Anugerah Sekuritas Indonesia, said the coupon offered by Indosat was quite interesting because it had the same rate as the yield in the bond market. According to him, from the time of issuance and coupons, ISAT was able to raise funds through these instruments.

From the data of the Indonesia Bond Pricing Agency (IBPA), throughout the first semester of 2019, the combined bond yield index was 7.97 percent. But, when compared to corporate bond yields were 7.37 percent and the government bond yields were higher by 8.04 percent.

Based on the Indosat financial report as of March 2019, the total current assets of Indosat are Rp8.6 trillion with total liabilities of Rp 43.77 trillion. The company’ revenue in three months was slightly increased 3.9 percent compared to the same period last year, from Rp5.8 trillion to Rp6 trillion.

Then, in terms of operating profit, the operator earned Rp237.5 billion, up 349.1 percent compared to the same period last year of Rp.52.9 billion.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com