Indonesia’s second largest telecoms operator by subscribers and revenues, PT Indosat, says it will issue bonds worth between USD500 million and USD700 million in 2010, to fund its CAPEX programme and for debt refinancing. Indosat CEO Harry Sasongko Tirtotjondro confirmed the plan but added a caveat that any issue depended ‘on a balance between volume value and efficiency.’ The telco’s plans to hold a bond sale have previously been on hold due to a weak market in the wake of the global credit crunch. However, Indosat finance director Peter Kuncewicz is quoted as saying the firm is in a strong position – cash-wise – and is waiting for the right moment to strike. ‘We don’t have to panic. We don’t have to rush to the market,’ Tirtojondro said.
The finance director added that part of the funds would be used to refinance IDR4.5 trillion (USD499.4 million) of debts maturing in 2010, as well as to shore up its investment plans. Indosat is targeting CAPEX of between USD550 million
and USD700 million this year, with the lion’s share allocated for infrastructure projects. Tirtojondro noted too that the firm is still considering a plan to offload its telecoms tower assets, which are thought to have a market valuation of USD1.9 billion.