Indosat to buy back USD650m of debt in bond offer

19 May 2015

Indonesian publicly listed telco PT Indosat is looking to buy back USD650 million-worth of bonds, which have a maturation date of 2020, in an attempt to reduce its exposure to US dollar currency fluctuations. The Jakarta Post quotes Indosat’s Andromeda H Tristanto as saying that the telco may exercise its call option on the entire USD650 million of its bonds by 29 July this year, noting that the company has already put in place the funding needed to issue the call, securing US-denominated credit facilities worth USD500 million and rupiah-denominated (IDR) loans worth USD150 million.

According to Tristanto, Indosat is striving to make its ratio of US dollar to IDR-denominated liabilities stand at around 30:70. The carrier’s total US dollar-denominated liabilities stands at USD850 million, accounting for around half of its total liabilities, which hit IDR39.06 trillion as of December 2014.

Indonesia, Indosat Ooredoo (incl. IM2)