World VoIP NewsTelkom to issue USD214m in bonds in H1 2010Telkom to issue USD214m in bonds in H1 2010

Telkom to issue USD214m in bonds in H1 2010


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Indonesia’s largest telco by customers and revenues, Telekomunikasi Indonesia (Telkom), has revealed plans to issue a rupiah denominated bond worth IDR2 trillion (USD214 million) in H1 2010 to help finance this year’s CAPEX, The Jakarta News reports.
Indonesia’s largest telco by customers and revenues, Telekomunikasi Indonesia (Telkom), has revealed plans to issue a rupiah denominated bond worth IDR2 trillion (USD214 million) in H1 2010 to help finance this year’s CAPEX, The Jakarta News reports.

According to Telkom president Rinaldi Firmansyah the company is holding a ‘beauty contest’ with more than six securities companies as it searches for the one which has the best understanding of telecoms. It hopes to conclude the selection process by the end of this month. He went on to say the bond offer is part of the telco’s planned USD2 billion capital expenditure for 2010.

Around 60% of the monies will be sourced internally with the remainder coming from the financial market and via loans. Telkom plans to plough 70% of the total CAPEX into its mobile division Telkomsel and predicts high single digit growth for the unit, through the addition of twelve million subscribers this year. The fixed line division is, however, expected to realise low single digit growth, reflecting slow business in the fixed line segment. The paper also says that Rinaldi confirmed the group’s intention to acquire ‘one small telecommunications operator’ this year, with the spotlight falling sharply on Bakrie Telecom, operator of the CDMA brand Esia and wireless telecommunications services Wifone and Wimode.


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