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Jakarta Post

PT Tower Bersama Infrastructure closes $500 million debt

  • Dylan Amirio

    The Jakarta Post

Jakarta   /   Sat, April 1, 2017   /   08:32 am
PT Tower Bersama Infrastructure closes $500 million debt A technician works on a tower owned by PT Tower Bersama Infrastructure in Duren Sawit, East Jakarta. (tribunnews.com/File)

Broadcast tower operator PT Tower Bersama Infrastructure (TBIG) has announced the closing of debt facilities to the tune of US$500 million, its longest maturity revolving credit facilities to date.

The company’s total debt as of Dec. 31, 2016, was Rp 17.1 billion (US$1.28 million) and its net debt was Rp 16.7 billion with a cash balance of Rp 365 billion.

TBIG CEO Hardi Wijaya Liong said that over the past three years, the company had managed to maintain overall leverage levels under five times net debt and had successfully accessed both the bank and bond markets.

He elaborated that the company boasted robust organic growth with 11 percent gross tenant additions and significant shareholder returns of around Rp 1.5 trillion in 2016.

“Using these new facilities, we will continue to profitably grow the business and increase returns to shareholders,” Hardi said in a statement on Friday.

The company further commented that it had an extremely strong debt structure and that 83 percent of its long-term revenue was contracted revenue from telcom operators such as Telkomsel, XL Axiata and Indosat Ooredoo, which also provides good coverage for all of its future debt servicing.

“We maintain our prudent hedging strategy by using life-of-debt derivative hedging instruments, with further protection from $40 million a year of long-term contracted revenue. The certainty of our contracts reduces the risk of cash flow,” TBIG’s CFO Helmy Yusman Santoso added. (bbn)