Thursday, May 31, 2012

INDONESIA - CAPITAL MARKETS - Indosat Aims to Cash Trillions From Bonds

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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