www.thejakartaglobe.com - Indosat, the country’s second-largest mobile phone operator, plans to
raise Rp 2.5 trillion ($267 million) from selling conventional and
Islamic bonds next month.
The Jakarta-based mobile operator
plans to sell Rp 2 trillion of seven- and 10-year conventional bonds
next month and Rp 500 billion of seven-year Islamic bond at the end of
June this year.
The company will offer the notes to investors
from June 20 to 22 and plans listing the bonds on the Indonesian Stock
Exchange on June 28, the company said in a brief prospectus in Bisnis
Indonesia on Monday. (source)
While the company did not provide details
on the seven- and ten-year conventional bonds, it has hired Mandiri
Sekuritas, DBS Vickers Securities Indonesia, HSBC Securities Indonesia,
Danareksa Sekuritas and Standard Chartered Securities Indonesia to help
sell them.
Many Indonesian companies are selling bonds to
finance their operations amid the country’s accelerating economy and to
capitalize on low borrowing costs. Indonesia’s central bank, Bank
Indonesia, maintained its benchmark rate at 5.75 percent earlier this
month to spur economic growth in the country.
The company will
use 90 percent of the bond sale to finance its operations, including the
base station subsystem, and 10 percent to finance its bond buy-back,
the prospectus showed.
Indosat, which is 65 percent owned by
Qatar Telecom Asia, posted a 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 government owns 14.3 percent
of Indosat, whose revenue is expected to reach Rp 22 trillion this year,
Curt Stefan Carlsson, Indosat’s chief financial officer, said on May
15.
Indosat sold 2,500 mobile-phone towers to Tower Bersama
Infrastructure, a mobile-phone infrastructure provider, for $519 million
in February this year. Net income at Indosat dropped 97 percent to Rp
16.6 billion in the first quarter this year 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 to more than
100 million customers at Telkomsel, the country’s biggest mobile
operator.
Shares of Indosat dropped 1.8 percent, to Rp 4,175 on the IDX on Monday.
Source: http://www.thejakartaglobe.com/business/indosat-aims-to-cash-trillions-from-bonds/520693 - May 30, 2012
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