Indosat looks to markets for USD850m in loans

8 Jul 2014

Indonesian mobile network operator PT Indosat has reportedly submitted proposals to several lenders seeking loans totalling USD850 million, according to local news outlet Kontan citing its investor relations officer Andromeda Tristanto as saying. The official says that Indosat intends to issue ‘rupiah-denominated’ loans totalling USD850 million by the end of 2014, which will be used to refinance bonds worth USD650 million due in 2020 and to help fund next year’s CAPEX requirements.

Last month, TeleGeography’s CommsUpdate reported that Qatar-backed Indosat was looking to secure loans totalling around IDR1 trillion (USD83.5 million) from two foreign banks in the third quarter of this year, again to finance its planned CAPEX of IDR8 trillion-IDR9 trillion for 2014; 80% of the total CAPEX will be spent on modernising the cellco’s infrastructure, Tristanto said at the time. Indosat is now Indonesia’s third largest mobile operator by subscribers, having been overtaken in second spot by rival XL Axiata in Q3 2013.

Indonesia, Indosat Ooredoo (incl. IM2)