Indosat completes network modernisation and sets lower CAPEX for 2015; plans to issue bonds

27 Oct 2014

Indonesia’s third largest mobile phone operator Indosat says that having completed its major network modernisation project in the country, it is looking to reduce its capital expenditure funding in FY2015. The carrier’s director Alexander Rusli says that CAPEX for next year will be in the region of IDR7 trillion-IDR7.5 trillion (USD580 million-USD622 million), compared to the IDR8 trillion spent this year. However, the official declined to comment on the source of Indosat’s funding for next year.

Reuters notes that previously, Indosat investor relations officer Andromeda Tristanto had said that the company was finalising a total of USD540 million in ‘revolving loans’ from no fewer than seven banks. The telco had planned to use the loans to refinance debt, finance 2015 CAPEX and support its day to day operations. More recently, Tristanto is quoted as saying that Indosat is planning to issue bonds totalling IDR10 trillion by early December. It intends to use 28% of the proceeds to pay its licensing fees and the remainder to pay debts due in 2015.

Indonesia, Indosat Ooredoo (incl. IM2)