JAKARTA (TheInsiderStories) – Indonesia’s largest telecommunication and network provider PT Telkom Indonesia Tbk (IDX: TLKM) issued conventional and sharia Medium Term Notes (MTN) with a total value of Rp1.5 trillion (US$103.44 million) on Tuesday (4/9). The MTN offered a duration of one to three years
TLKM’s finance director Harry M Zen said the funds from MTN issuances will use to strengthen its capital through a reprofiling of some debts of previous debt with floating interest rate debt with fixed rate. Fund raised from the notes also expected to support the company’ efforts to fulfill the company’s targets in this year.
“All the proceeds from the MTN will be used for the development of the access network and backbone network construction of broadband Fiber to The Home (FTTH),” said Zen in written statement on Thursday (06/09).
Telkom has offered the MTN with the principal amount of Rp758 billion issued in three series, Series A amounting to Rp262 billion, Series B Rp200 billion, and Series C Rp296 billion. As for the Sharia Ijarah, the operator has offered Rp742 billion also issued in 3 series, which amounted to Rp264 billion for Series A, Rp296 billion for Series B and Rp182 billion for Series C.
For the MTTns, Telkom has previously obtained the rating of PEFINDO rated idAAA (Triple A) and idAAAsy (Triple A Sharia). 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 to 20. Bahana Sekuritas, BNI Sekuritas, Danareksa Sekuritas, CGS-CIMB Sekuritas, and Mandiri Sekuritas serve as underwriter.
Recently Telkom has launched its satellite namely Merah Putih, the 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 United States 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 (1H) of this year from Rp12.1 trillion in the 1H of last year.
However, the the state-owned operator booked 0.54 percent growth in revenue to Rp64.36 trillion in 1H 2018 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.