Indonesia’s third largest telecommunications operator by subscribers, PT Indosat, will issue bonds worth up to IDR2.50 trillion (USD197.5 million), either in the second or third quarter of this year, according to the company’s Investor Relations Officer Andromeda Tristanto, as reported by Kontan News. The operator will use the proceeds to refinance bonds worth USD650 million that are due in 2020.
As previously reported by CommsUpdate, last month the carrier said it was looking to issue 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) at the time, 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 1800MHz.