Indonesian mobile operator Indosat Ooredoo is on course to raise a total of IDR3.46 trillion (USD263.7 million) through a bond issuance, with coupons set at between 7.5% and 9.15%, DealStreetAsia reports citing a statement from its management. The bonds comprise a regular note of IDR3.17 trillion and an Islamic bond of IDR288 billion, with the lion’s share of the proceeds expected to be used to refinance debts from a number of creditors, including: BCA, BNI, BNP Paribas Indonesia, Sarana Multi Infrastruktur, Indonesia Infrastructure Finance, Bank of Tokyo-Mitsubishi UFJ, Bank Mizuho Indonesia, Bank Sumitomo Mitsui Indonesia and Bank CIMB Niaga. ‘The funds gathered from the Islamic note will be used to pay for the spectrum licence fees,’ its management also clarified.
Indosat Ooredoo reported net profit of IDR428.1 billion in H1 2016, reversing a net loss of IDR733.8 billion in the corresponding year-earlier period. The massive swing was aided, it said, by a significant reduction in US dollar-denominated debts from USD1.16 billion to USD227.5 million. In January-June 2016 revenues for the operator climbed 10.5% year-on-year to IDR13.94 trillion from IDR12.62 trillion and earnings before interest, tax, depreciation and amortisation (EBITDA) rose 12.6% to IDR6.04 trillion with an EBITDA margin of 43.3%. Cash-out CAPEX in the six-month period stood at IDR3.78 trillion, compared to IDR2.79 trillion in H1 2015. Operationally, Indosat Ooredoo closed out 30 June 2016 with a total of 80.5 million cellular mobile customers, up 17.5% y-o-y, with the cellco noting that the upswing in users also reflected well on monthly blended ARPU, which improved by 5.3% to IDR26,000 from IDR24,700 in 1H15. Minutes of use (MoU) was also up 4.2% at an average 70.2 minutes per month and data traffic usage surged 83.5% to a total of 157,628TB.
In terms of network development, Indosat Ooredoo – which is 65.00%-owned by Ooredoo Asia – said it had a total of 53,333 base transceiver stations (BTS) on air at 30 June 2016, up 23.8% from 43,075 a year before, broken down as: 2G BTS, 23,793 (28.6%, 20,067); and 4G BTS, 3,724 (+3,413%, 106).