www.thejakartaglobe.com - Indosat, the country’s second-largest mobile-phone operator, is
considering increasing the size of its planned bond sale by 20 percent
next month to cater to growing demand by investors, an executive said.
The
Jakarta-based company plans to increase the bond to Rp 3 trillion ($324
million) from the original plan of Rp 2.5 trillion, said Curt Stefan
Carlsson, chief financial officer of the company after an annual
shareholders meeting on Monday.
“Indosat will sell bonds later
this month or early next month,” he said, without saying how it would
use the proceeds from the sale. (source)
The company has Rp 3.5 trillion in debt that is due this year, he said.
In
the original plan, Indosat proposed selling Rp 2 trillion in
conventional bonds and Rp 500 billion in Islamic debt, called sukuk.
Both notes would mature in 10 years. It didn’t provide the composition
for the Rp 3 trillion bond proposal.
Indosat hired DBS Vickers
Securities Indonesia, Danareksa Sekuritas, HSBC Securities Indonesia,
Mandiri Sekuritas and Standard Chartered Securities as the financial
adviser for the debt sale.
Indosat, which is 65 percent owned by
Qatar Telecome Asia, posted net income of Rp 835 billion last year, up
29 percent from 2010, while its revenue edged up to Rp 20.58 trillion
from Rp 19.79 trillion a year earlier. The Indonesian government owns
14.3 percent of Indosat.
The company’s revenue is expected to reach Rp 22 trillion this year, Carlsson said.
Indosat
sold 2,500 mobile-phone towers to Tower Bersama Infrastructure, a
mobile-phone infrastructure provider, for $519 million in February this
year.
Indosat also agreed to pay Rp 417.5 billion in dividends
this year, or almost 50 percent of last year’s earnings. It also set
aside Rp 6.5 trillion to Rp 7.5 trillion as capital expenditure this
year.
Its net income in the first quarter dropped 97 percent to
Rp 16.6 billion from a year earlier, despite a 2.1 percent growth in
revenue to Rp 4.9 trillion.
Indosat has 52.1 million registered
mobile phone subscribers, compared with more than 100 million customers
at Telkomsel, the biggest mobile operator in Indonesia.
Indosat
shareholders also agreed to appoint Frederik Johannes Meijer as the
company’s new chief commercial officer, replacing Laszlo Imre Barta.
Meijer previously served as vice president of Bakrie Telecom, a rival
mobile-phone operator.
Shares of Indosat tumbled 6.5 percent to
Rp 4,300 on the Indonesia Stock Exchange on Tuesday, bringing its
decline this year to 24 percent. That compareswith the benchmark Jakarta
Composite Index’s 6 percent advance so far this year.
Investor Daily
Source ; http://www.thejakartaglobe.com/business/indonesias-indosat-to-boost-bond-sale-to-rp-3t-citing-high-demand/518171 - May 17, 2012
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