JAKARTA (TheInsiderStories) – PT Indosat Ooredoo Tbk (IDX:ISAT) offers conventional bond and SUKUK with the total worth of Rp2 trillion (US$141.84 million), said the president director on Thursday (01/24). The coupons of the two bonds ranged at 7.25-10.5 percent per annum.
According to the President Director and CEO of Indosat Chris Kanter, in two years period, the cellular operator aimed to releases up to Rp10 trillion of bond. Of the total amount, he said, around Rp7 trillion issues as a conventional bond while others as a Ijarah SUKUK.
He explained, the two instrument has five tenors, 370 days with coupons 7.25-8.25 percent per year, three years 8.5-9.5 percent a year, five years 8.75-9.75 percent per annum, seven years 9.25- 10.25 percent per year and 10 years with coupons of 9.5-10.5 percent every year.
The book building process will be conducted from Jan. 24 to Feb. 6, the effective date is expected to be obtained on Feb. 19, and to be records on the Indonesia Stock Exchange on March 1.
The bonds issuance assisted by PT BCA Sekuritas, PT CGS CIMB Sekuritas Indonesia, PT DBS Vickers Sekuritas Indonesia, PT Indo Premier Securities, and PT Mandiri Sekuritas.
All funds obtained from public offerings will be used to spend access network infrastructure, core networks and IT infrastructure used to increase capacity and expand the network’s reach, said Kanter.
He revealed, Indosat need funds to refinance the maturity debt and business expansion. The newly president and CEO stated to prepared capital expenditure around $2 billion in 2019.
The planned, he said, 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.”
In the third quarter (3Q) of 2018, Indosat posted a loss of Rp1.53 trillion. This performance dropped dramatically compared to the same period in 2017 which benefited Rp1.09 trillion.
The operator’ losses in the 3Q were driven by lower revenues, from Rp22.565 trillion in 2017 to Rp16.76 trillion in 2018. The revenues was contributed by the cellular sector Rp13.1 trillion, Multimedia, Communication, Data, Internet of Rp3.02 trillion, and fixed telecommunications amounting to Rp568.58 billion.
Kanter noted, the telecommunications industry is currently down. At the same time, the government imposed SIM Card registration which had a massive impact on all the telecommunications industry.
“Indonesian people reluctant if they are required to register, this has resulted in a massive decline for all operators,” he explained
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