The Jakarta Post writes that Indonesian publicly listed telco PT SmartFren Telecom (Smartfren) plans to issue between IDR1 trillion and IDR2 trillion (USD75.02 million and USD150.04 million) in convertible bonds in H2 2015 to support its working capital and to refinance some of its bank loans. According the telco’s finance director, Anthony Susilo, the move forms the second tranche of convertible bonds it plans to issue in the second half of the year: ‘We still have a slot to issue another IDR4.4 trillion for the second-round convertible bonds issuance. Of that portion, we’ll issue between IDR1 trillion and IDR2 trillion to cover our needs this year,’ he said. Smartfren earlier agreed to issue a total of IDR9 trillion in convertible bonds, the proceeds of which will be used to fund its day-to-day working expenses and refinance bank loans.
The CDMA operator’s announcement comes hot on the heels of its plan to invest between USD400 million and USD500 million in a multi-year CAPEX programme to migrate to 4G Long Term Evolution (LTE) technology – of which USD200-USD300 million is being spent this year. Smartfren will rely on bank loans and loans from vendors to finance the LTE network development, and has already signed equipment deals with ZTE and Nokia worth USD401.98 million and USD383.58 million, respectively.
Last week, CommsUpdate reported that Smartfren has launched a new affordable smartphone as it looks to reinvigorate its position as a mobile internet services provider. The telco has teamed up with ROM maker Cyanogen to offer its mobile customers the Cyanogen OS 12-powered Adromax Q handset, a phone that is actually being manufactured by China’s Qingdao Haier Telecom. The pair note that Andromax Q – part of a new stable of 4G LTE smartphones – is being sold for an affordable USD97 and comes with a 4.5-inch FWVGA (854 × 480 pixel resolution) display and a Snapdragon 410 SoC processor, clocked at 1.2GHz. It is also equipped with a five megapixel camera with LED flash and Smartfren is including 1GB of RAM, 8GB of internal storage (expandable via microSD card slot), dual-SIM support and 4G LTE capability.