Indosat looks to issue bonds to pay for 4G licence, refinance debts

10 Dec 2014

Indonesian operator PT Indosat is looking to raise IDR2.50 trillion (USD202.3 million) through the issuing of conventional and Islamic bonds on the local market, to refinance debt and pay for its 4G mobile licence. In a filing to the Indonesia Stock Exchange (IDX) on Monday, Indosat said IDR2.31 trillion of the total would be in conventional bonds, and the remainder in Islamic bonds. ‘From the total raised fund from the bond issuance, 78% will be used to refinance part of our debts, while the remaining 22% will be used to obtain [a] network licence,’ Indosat CEO Alexander Rusli said. The carrier’s new licence is valid for ten years with payment being made annually, he said in a statement. The 4G concession, which is due to be handed over by the Communication and Information Ministry, will allow Indosat to use radio frequencies of 800MHz, 900MHz and 1,800MHz.

Indonesia, Indosat Ooredoo (incl. IM2)