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Indosat Seeks IDR1Trillion-Worth Loan Facility

Lavinda, Elok Ani Riani   -   Thursday, October 31 2013, 8:30 am

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JAKARTA—After obtained loan facility worth IDR1 trillion three months ago, PT Indosat Tbk is reconsidering to seek loan facility totaling IDR1 trillion of two financial institutions.

In July, the company has obtained an investment loan facility from PT Bank BCA Tbk as much as IDR1 trillion. The unsecured loan was given with 5-years tenor and an interest rate at 9%.

Company’s Head Investor Communication Andromeda H. Tristianto said the company reconsidering to make two form of cooperation bilateral loan, with foreign banks and state-owned financial institutions amounted to IDR1 trillion.

“The loan facility totaling IDR1 trillion from both institutions, but it’s separate partnership. We can mention the value as it’s still in process,” he said, Wednesday (10/30).

Indosat wants the tenor and interest rate is similar to loan from BCA, with 5 years-tenor and maximum interest rate of 9%. The loan facility will be used for business expansion and refinancing maturing debt next year.

He said company’s budget capital expenditure next year is estimated as much as IDR8 trillion or equal to this year. Most of capex was used for modernization, add network and other expansion need.

“The remaining maturing debt this year as much as IDR100 billion, the company will refinance the debt in November using internal cash,” he said.

He said rupiah exchange rate weakening against US dollar gives its own challenge. Because Indosat foreign currency debt reached US$940 million or equal to IDR10.3 trillion, it was 50% of total debt.

Foreign currency debt in this year and next year won’t be too significant. He said foreign currency debt maturing in 2020 as much as US$650 million. (t08)

Editor : Taufik Wisastra

 
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