Indonesia's XL Axiata Raises US$90.8 M from Bond Issuances
Tower for Base Transceiver Station - Photo by XL Axiata

JAKARTA (TheInsiderStories) – Indonesian cellular operator PT XL Axiata Tbk (IDX: EXCL) published two debt securities under a two-year program with total amount Rp2 trillion (US$68.96 million), it said on Thursday (13/09).

The unit of Malaysian Axiata Group Bhd has planned to issue debt securities with total amount Rp5 trillion starting this year to 2019. The company added, the proposed exercise would not have any effect on its issued and paid-up share capital or any of the substantial shareholders’ stakes.

According to XL Axiata Finance Director, Mohamed Adlan bin Ahmad Tajudin, the funds from the conventional and Sharia bond emissions will be used for capital expenditure and strengthening its networks in Java and outside Java. This year the operator set up capital expenditure Rp 7 trillion to reached the areas that are still unreachable.

In the first half (1H) of 2018, XL Axiata‘ revenue grew almost flat to Rp11.067 trillion from the same period in 2017 worth of Rp 10.95 trillion supported by increased income from data services.

Total assets grew three percent to Rp 56.35 trillion from Rp 54.751 trillion in 1H 2017. Cash and cash equivalents grew eight percent fromRp1.94 trillion to Rp 2,096 in the 1H 2018. Liabilities dropped by nine percent to Rp 13.30 trillion compared to last year Rp 14.56.

In the 1H 2018, the company had 111,786 based transceiver station. According to its president director Dian Siswarini growth outside Java still high, even though its contribution is still around 10-15 percent.

Both the Sukuk and conventional bonds were issued in five series to reach all segments of investors. 370-day Series A bonds are intended for banks, Series B has a three-year tenor and five-year tenor C Series for banking and asset management. While the D Series is a seven-year tenor and the E Series is a 10-year tenor for insurance companies and pension funds.

The coupon and yields for the dual bonds are 8.00-8.50 percent for a one-year tenor, 8.75-9.50 percent for a three-year tenor, 9.25-10.25 percent for a 5-year tenor, 9, 85-10.50 percent for a 7-year tenor, and 10.00-10.65 percent for a 10-year tenor.

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