Telkom seeking USD1bn to fund 2010 CAPEX plan

30 Nov 2009

Indonesia’s dominant telecoms operator PT Telekomunikasi Indonesia (Telkom) is reportedly seeking USD1 billion in loans to help fund its USD2 billion capital expenditure requirements for 2010, the Jakarta Post reports. According to Telkom finance director Sudiro Asno, the operator is also looking to raise funds by issuing bonds and securing vendor financing deals. ‘We have signed vendor financing deals with Huawei and ZTE with a total value of USD400 million, from which we have only used USD60 million so far,’ he said.

Earlier this month Telkom revealed plans to increase its capital expenditure to USD2 billion in 2010, to develop and expand its business. At the time, Sudiro Asno told reporters the firm is looking to issue up to IDR3 trillion (USD310 million) in local bonds to help finance the CAPEX in the second quarter of 2010, the proceeds of which will be used to support the company’s net profit growth target of above 5% for next year. ‘We also expect our revenue to grow by a single digit (between 1% and 9%) next year,’ Asno said, adding that higher cellular subscribers’ expectations for 2010 will support the revenue growth. The operator is targeting at least ten million net mobile subscriber acquisitions in 2010.

Indonesia, Telkom Indonesia