Indonesia's XL Axiata Raises US$90.8 M from Bond Issuances
Tower for Base Transceiver Station - Photo by XL Axiata
JAKARTA (TheInsiderStories) – An Indonesian telecommunication operator, PT XL Axiata Tbk (IDX: EXCL) gives more space to get funding from the market.  After the offering period, XL Axiata increased its bonds and sukuk issuance value to Rp 1.27 trillion (US$90.8 million), that consists of Rp 634 billion bonds and Rp 640 billion sukuk.

In phase II of 2019, The XL Axiata will be issued in four series. It has 6.73 percent value increase in series A and series D.

Series A is the highest issuance at Rp 310 billion with 7.9 percent rate in 370 days maturity. Series B is Rp 191 billion with 8.65 percent rate annually in 3 months due. Meanwhile, series C is the lowest with Rp 40 billion value, 9.25 percent rate annually, and 5 years due. While the series D valued Rp 93 billion with 10 percent rate in 10 years maturity date.

Then, for SUKUK ijarah  phase II, has 3.05 percent increasing amount in three series, from C to E. The SUKUK itself is divided into five series. The series A amount is Rp 351 billion with Rp 27.72 billion installed payment in 370 days. Every Rp 1 billion sukuk will get Rp 79 million payment. While in the Rp 110 billion series B, the installed payment is Rp 9.51 billion annually, or Rp 86.5 million for Rp 1 billion in 3 years.

Series C SUKUK offered is Rp 138 billion with Rp 12.76 billion installed payment. The payment will be Rp 92.5 million for Rp 1 billion investment annually in 5 years due. Series D, the lowest amount of all, is Rp 15billion with Rp 1.45 billion installed payment. Each Rp1 billion will get Rp 97million annually in 7 years. The least, Rp 26 billion series E will have Rp 2.6 billion installed payment, or Rp 100 million for Rp 1 billion investment. The maturity date is the longest of all with 10 years.

Investors will receive the first bonds yield on May 8. After 2 days offering period ended with a rationing, XL Axiata is now waiting for investor’s payment. The bonds and sukuk will be distributed on February 8, and listed in Indonesia Stocks Exchange on February 11.

The underwriters are PT CGS-CIMB Sekuritas Indonesia, PT DBS Vickers Sekuritas Indonesia, PT Indo Premier Sekuritas, PT Mandiri Sekuritas, and PT Maybank Kim Eng Sekuritas. Meanwhile, PT Bank Mega Tbk (IDX: MEGA) is chosen as trustee.

The XL Axiata will also use the fresh funding for capital expenditure in developing network capacity and expansion. According on plan, XL will purchase Base Station Subsystem(BSS) and/or optical fiber transmission.

“The BSS specification is the 4G LTE BTS to support GSM, UMTS and 4G LTE technologies in a single platform in 900 MHz, 1800 MHz and 2100 MHz cellular frequency bands which aims to expand network coverage outside Java and increase capacity and quality in Indonesia.

While optical fiber transmission aims to strengthen high-speed network connectivity between cities and expand fiber coverage to BTS, in order to prepare company’s high-speed network for 4G LTE BTS and the next generation,” said official release.

Liabilities of XL Axiata’ increased by 10 percent in the third quarter of 2018, caused by the hike of company’s short-term debts and long-term lease liability. The equity went stagnant in the same period, due to company’s loss.

The XL Axiata suffered Rp 145 billion loss until 2018’s third quarter, while its revenue slightly decreased to Rp 16.89 trillion.

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