Indosat Ooredoo issues bonds worth USD225m to repay debt, fund business expansion

2 May 2017

Indonesian mobile network operator (MNO) Indosat Ooredoo has opened a public offering for conventional and sharia bonds totalling IDR3 trillion (USD225 million), part of a series of placements that will be used to raise funds to pay down loan debt and finance the company’s ongoing expansion programme. CEO Alexander Rusli said in a statement last Friday that the monies are needed to help fulfil Indosat’s long term financing programme and to improve its capital structure and debt profile. He expects a ‘positive effect on business expansion … to allow us to focus more on providing the best service for the subscribers’, whilst confirming that the MNO is launching an offer for conventional bonds worth IDR2.7 trillion and sharia bonds worth IDR300 billion, both of which carry coupon rates from 6.85% to 9.45% to be repayable in 370 days to ten years. The initial offering will be from 27 April to 10 May 2017 with shares expected to be listed on the Indonesian Stock Exchange on 2 June. The underwriters are Mandiri Sekuritas, BCA Sekuritas, Danareksa Sekuritas, DBS Vickers Sekuritas Indonesia, Indo Premier Sekuritas and CIMB Sekuritas Indonesia.

Indonesia, Indosat Ooredoo (incl. IM2)