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Jakarta Post

Indosat issues bonds to expand network coverage

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, January 25, 2019   /   11:12 am
Indosat issues bonds to expand network coverage An Indosat technician carries out maintenance work at one of the company’s base transceiver stations in Jakarta. (JP/Ricky Yudhistira)

Telecommunications company Indosat, also known as Indosat Ooredoo, will issue bonds in three phases to to expand its network coverage, the company’s president director, Chris Kanter, said on Thursday.

The bonds, worth Rp 10 trillion (US$706.48 million), consist of Rp 7 trillion in conventional bonds and Rp 3 trillion in Islamic bonds.

In the first phase, Indosat will issue Rp 1.5 trillion worth of conventional bonds and Rp 500 billion in sharia bonds.

The proceeds from the bond issuance will be allocated for network infrastructure expenditures -- radio frequency, packet core and gateway -- as well as to enhance its information technology infrastructure.

"We hope this will have a positive impact on business development so that we can increasingly focus on providing the best services to our customers," Chris said in in a press conference at the company’s headquarters in Jakarta.

The book-building period will take place from Jan. 24 to Feb. 6. Indosat plans to list the bonds on the Indonesia Stock Exchange (IDX) on March 1.

Indosat has appointed PT BCA Sekuritas, PT CGS CIMB Sekuritas Indonesia, PT DBS Vickers Sekuritas, PT Indo Premier Sekuritas and PT Mandiri Sekuritas as joint lead underwriters, while Bank Rakyat Indonesia has been appointed as trustee. (das/bbn)