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Telkom to issue Rp 2t in bonds in H1
The country’s largest telecommunication provider, PT Telekomunikasi Indonesia (Telkom), plans to issue a rupiah denominated bond worth Rp 2 trillion (US$214 million) in the first semester of 2010 to help finance this year’s capital expenditure
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he country’s largest telecommunication provider, PT Telekomunikasi Indonesia (Telkom), plans to issue a rupiah denominated bond worth Rp 2 trillion (US$214 million) in the first semester of 2010 to help finance this year’s capital expenditure.
Telkom president director Rinaldi Firmansyah said on Monday the company was in the process of selecting underwriters for the bond issuance.
“We are holding a beauty contest with more than six securities companies. We are searching for
a good company, which understands telecommunications,” he said, adding that the selection process would be completed by the end of this month.
The bond issuance, he said, is aimed at funding this year’s capital expenditure, estimated to reach $2 billion by the end of the year.
Telkom financial director Sudiro Asno said recently that the cash for capital expenditure would come from internal cash (60 percent) and the rest from the financial market and loans (40 percent).
He said 70 percent of the capital expenditure was due to be allocated to Telkomsel, Telkom’s cellular business subsidiary and also the company’s biggest contributor to overall revenue.
Sudiro predicted “high single digit growth” for Telkomsel through an additional 12 million subscribers next year, and “low single digit growth” for Telkom next year.
Rinaldi said that the growth of Telkom would be single digit due to the anticipated slow business in the fixed line division.
Rinaldi also confirmed the plan to acquire “one small telecommunications operator” this year.
Speculation is rife that the companies to be acquired would include PT Bakrie Telecom,
which is the telecommunications unit of Bakrie and Brothers group and also the operator of the CDMA brand Esia and wireless telecommunications services Wifone and Wimode.
Telkom has determined it strategy to expand its non-core business and become the biggest Information Technology provider in the country. In November the company unveiled a new subsidiary, Mojopia, a web portal that will serve as a platform for online shopping, content and communications.
The beta version of the web portal is expected to be available by the end of the year under the address of www.mojopia.com.
Telkom president director Rinaldi Firmansyah said on Monday the company was in the process of selecting underwriters for the bond issuance.
“We are holding a beauty contest with more than six securities companies. We are searching for
a good company, which understands telecommunications,” he said, adding that the selection process would be completed by the end of this month.
The bond issuance, he said, is aimed at funding this year’s capital expenditure, estimated to reach $2 billion by the end of the year.
Telkom financial director Sudiro Asno said recently that the cash for capital expenditure would come from internal cash (60 percent) and the rest from the financial market and loans (40 percent).
He said 70 percent of the capital expenditure was due to be allocated to Telkomsel, Telkom’s cellular business subsidiary and also the company’s biggest contributor to overall revenue.
Sudiro predicted “high single digit growth” for Telkomsel through an additional 12 million subscribers next year, and “low single digit growth” for Telkom next year.
Rinaldi said that the growth of Telkom would be single digit due to the anticipated slow business in the fixed line division.
Rinaldi also confirmed the plan to acquire “one small telecommunications operator” this year.
Speculation is rife that the companies to be acquired would include PT Bakrie Telecom,
which is the telecommunications unit of Bakrie and Brothers group and also the operator of the CDMA brand Esia and wireless telecommunications services Wifone and Wimode.
Telkom has determined it strategy to expand its non-core business and become the biggest Information Technology provider in the country. In November the company unveiled a new subsidiary, Mojopia, a web portal that will serve as a platform for online shopping, content and communications.
The beta version of the web portal is expected to be available by the end of the year under the address of www.mojopia.com.
