Indosat to offer USD219 million in bonds to finance expansion

19 Apr 2007

Indonesian telecoms company PT Indosat is to offer IDR2 trillion (USD219 million) in bonds next month, part of which will be used to fund the company’s expansion plans. The Jakarta Post writes that the offering will consist of IDR1.7 trillion worth of conventional bonds and IDR300 billion in sharia bonds (obligasi syariah). The conventional bonds, the fifth such offering by Indosat, will be split into two parts, each with its own interest rate and maturity. The bonds will be on sale to the public from 22-24 May, and be officially listed on the Surabaya Stock Exchange on 30 May, the paper says. Indosat finance director Wong Heang says the placement forms part of the company’s effort to raise USD1 billion to finance this year’s CAPEX programme. ‘80% of the money will be used to expand our cellular network, including the construction of more base transceiver stations (BTSs), while the remaining 20% will be allocated for the development of our IT and backbone systems,’ he said. Indosat plans to deploy between 3,500 and 4,000 BTSs across the country to augment the 7,221 towers already in place. It also hopes to sign up a further five to six million users, on top of the 16.7 million subscribers it claimed at the end of 2006.

Indonesia, Indosat Ooredoo Hutchison (IOH)