JAKARTA (TheInsiderStories) – Two Indonesian cellular operators has planned to released local currency bond with total amount Rp2.5 trillion ( US$177.30 million). PT XL Axiata Tbk (IDX: EXCL) has planned to issue at least Rp2 trillion of conventional and islamic bond while PT Indosat Ooredoo Tbk (IDX: ISAT) to issue Rp2 trillion in the same instrument.
Malaysian Axiata Bhd’ unit said the Sukuk will be issued in five series within the range of 370 days to 10 years maturity. Then, the conventional bond will be issued in four series.
The series A principal amount is Rp290 billion with 7.9 percent yield in 370 days and series B valued Rp191 billion with 8.65 percent annually in 3 years due. Other than that, series C has the lowest principal amount at Rp40 billion with 9.25 percent yield annually for 5 years maturity and series D’s principal amount is Rp73 billion with the highest yield at 10 percent annually and longest due at 10 years.
XL Axiata’ bond offering period will be held on Feb. 4 to 6. Rationing is determined to be on February 6 and online distribution on Feb. 9 and will be listed on Feb. 11.
Furthermore, Indosat need funds to refinance the maturity debt and business expansion. Previously, the newly CEO Chris Kanter stated to prepared capital expenditure around $2 billion in 2019.
“We will totally change, we need millions of US dollar funds to do it,” he said.
The planned, Kanter stated is supported by its majority shareholder Ooredoo Asia Pte Ltd. He added, “From the start I asked for a capex commitment. I told Ooredoo I wanted to do a major transformation.”
According to him, to make a major transformation there were three things that were his priorities. First people, both process, and third business. Even so, he claimed to decide the exact strategy for the future.
“I do not know yet, but there is no description of whether our focus is on retail first or B2B (Business to Business) first,” he said.
It’s just that, he continued, in an era of technological speed like now, corporations must be able to capture technological developments, including strong planning.
“It can’t be done in the short or medium term. It must be done in the long term,” said Kanter.
by Linda Silaen, Email: firstname.lastname@example.org