JAKARTA (TheInsiderStories) – After released the global bond and get loan, the telco tower provider, PT Tower Bersama Infrastructure Tbk (IDX: TBIG) announced to offer local bond up to Rp2.91 trillion (US$207.86 million) to pay debt. Fitch Ratings has assigned an AA+ for the notes.
The bond issuances will add to the list of fundraising run by the company since last year for debt refinancing. Through its Singapore’ unit, TBG Global Pte. Ltd., the issuer offered a global bonds worth of $350 million with a 5.25 percent coupon rate due in 2022.
Previously, Chief Financial Officer of Tower Bersama Infrastructure, Helmy Yusman Santoso, said the plan to accelerate the repayment will be carried out on Feb. 22, 2021. On Jan. 20, the issuer has listed new global bonds worth $300 million on the Singapore Stock Exchange. The notes will mature in 2026 and have an interest rate of 2.75 percent and get BBB- rating from Fitch.
At the same day, the provider through its subsidiaries also received a loan facility worth of $275 million from a consortium of banks. This loan bears an interest margin of Libor+ 1.75 percent per annum for foreign currency and Libor+ 1.85 percent per year for the domestic loans and also end in June 2026.
After the issuance of the notes, total gross loans of the company and its units will become $505.4 million, include lease liabilities, usage right assets, 2017 loans, 2018 loans, and 2019 loans. Fitch assessed that Tower Bersama has sufficient funding space to complete the acquisition planned of 3,000 towers belonging to PT Inti Bangun Sejahtera Tbk (IDX: IBST) with total values of Rp3.97 trillion.
This transaction is expected to be completed near the end of the first quarter of 2021. The agency also estimated that the ratio of funds from operations to the net debt will remain five times in 2020 and 2021. The company’ acquisition strategy is estimated to increase revenue of $41 million and EBITDA of $34 million per year. The tower portfolios will also increases to 19,215 towers.
Going forward, the agency estimated that the telecommunications tower industry will mutually consolidate and be led by several big players, one of which is Tower Bersama.
Santoso optimistic that it can print double-digit growth in revenues, EBITDA and net profit in this year. In the first nine month 2020, the tower operator posted a net profit of Rp747.47 billion, up 22.14 percent from the same period last year amounting to Rp611.96 billion. The revenues also rose 13.54 percent to Rp3.94 trillion compared to last year of Rp3.47 trillion.
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