Indonesia’s Smartfren to sell bonds to refinance debts

9 Jun 2014

Telekom PT SmartFren (Smartfren), a company which offers CDMA-based wireless services in Indonesia, is looking to sell off mandatory convertible bonds as it looks to refinance IDR4 trillion (USD336 million) of debts that mature in 2014 and 2015. According to Smartfren finance director Antony Susilo, the debts relate to credit facilities from the China Development Bank Corporation and Anglo Financial. The bonds sale, which still needs shareholder approval, will be carried out by selling agent Sinarmas Sekuritas via two stages – one aimed at raising IDR1 trillion and the other IDR3 trillion – and could take place this year, depending on Smartfren’s financial needs.

The Jakarta Globe notes that the carrier had debts of IDR12.62 trillion at end-March 2014, and total equity was IDR3.05 trillion. In the current financial year Smartfren intends to invest USD100 million in its networks and services, the bulk of which will be spent on adding 700 base transceiver stations (BTS), bringing the total to 6,500. The company also plans to extend its fibre-optic cable network to 13,000km, up from 9,345km last year. Smartfren had 11.7 million subscribers at 31 March this year, according to TeleGeography’s Globalcomms Database.

Indonesia, PT Smart Telecom (Smartfren)