PT Tower Bersama Infrastructure Tbk (IDX: TBIG), a tower manager based in Indonesia, offered global bonds with total amount US$350 million - Photo by the Company

JAKARTA (TheInsiderStories)PT Tower Bersama Infrastructure Tbk (IDX: TBIG), a tower manager based in Indonesia, offered global bonds with total amount US$350 million, said the director yesterday (01/15). The five years notes will have an interest rate of 4.25 percent.

According to the finance director, Helmy Yusman Santoso, the debt maturing in 2025 had not yet been given a rating and would be a general obligation that was not guaranteed by the company. The company set the offering date of the bond until Jan. 21, 2020.

He continued, Tower Bersama will use the proceeds to pay the total outstanding balance of the revolving loan facility of $500 million. He noted, “As of September 30, 2019, the total gross and cash loans and cash equivalents of TBIG and its subsidiaries were Rp 23.18 trillion ($1.65 billion).”

Last year, Tower Bersama paid off maturing bonds with a principal value of Rp628 billion and an annual interest rate of 8.5 percent. The company used an internal funds to repay the debt.

In 2019, unit of PT Saratoga Investama Sedaya Tbk (IDX: SRTG), announces to issue global bonds up to US$850 million. Santoso said, the operator has leased 25,518 base transceiver stations and 15,091 telecommunication sites consisting of 15,032 towers and 59 watershed networks in 2019. The company’ tenancy ratio is 1.69.

To strengthened the provider businesses, Tower Bersama has took over two tower companies, PT Gihon Telekomunikasi Indonesia Tbk (IDX: GHON) and PT Visi Telekomunikasi Infrastruktur Tbk (IDX: GOLD). Both of these acquisitions added 1,120 leases and 859 telecommunication sites to the company’s portfolio.

However, the company is burdened by large loans in 2018, where loans in the US Dollar exchange rate that have been hedged are measured using a hedging rate of Rp20,452 billion and total gross senior debt of Rp13,263 billion.

With the bond issuance, said Santoso, the operator can get financial resources to improve its performance in 2019. He adds, even though the company’ net profit had fallen sharply, the management had agreed to distribute a cash dividend of Rp600 billion. This cash dividend, he said, has been distributed on June 21.

On July 23, 2019, its parent, an Indonesian private equity fund, spent Rp1.08 trillion to raise its ownership in the company. Then in Oct. 2, PT Wahana Anugerah Sejahtera sold more than 212.15 million shares or 5.69 percent of enlarged and paid capital in non-regular market.

With price of Rp6,477 a share the provider its estimated to raise funds around Rp1.37 trillio. The share sale through the local securities house, PT Mahakarya Artha Sekuritas and as the buyer is foreign company via PT Credit Suisse Sekuritas.

After the transaction the ownerships of Wahana are lowering to 29.15 percent from previously 34.84 percent. Beside Wahana, Tower Bersama stocks hold by PT Provident Capital Indonesia 25.23 percent, public 39.63 percent and Credit Suisse.

No further details on the transaction. But recently, the operator has shown their interest to acquire PT Indosat Ooredo Tbk (IDX: ISAT). The tower sales is estimating need costs $300 million.

Wahana is the unit of Saratoga, a company founded by Edwin Soeryadjaja and Sandiaga Salahuddin Uno. On July 30, an Indonesian private equity fund, spent Rp1.08 trillion to raise its ownership in TBIG.

The company purchased 23.82 million TBIG’ shares at Rp4,000 each, made on July 23. While Wahana, bought the shares twice on July 19 and 23, with total amount 245.03 million shares at the same price.

Beside Saratoga, Tower Bersama shares owned by PT Provident Capital Indonesia, a local investment fund founded by Winato. Based on the tower operator data on June 30, Provident holds 25.52 percent and the remaining is public, which holds 45.04 percent.

Tower Bersama is a telecommunications infrastructure provider company for the placement of base transceiver stations by telecommunications operators in Indonesia. As end of March, the company founded by Edwin Soeryadjaja and Sandiaga Salahuddin Uno, owned 30.80 percent in the tower company through its subsidiary Wahana.

US$1 = Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com