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Indonesia’s Telkom plans $214m bond issue
05 January 2010
Telkom Indonesia is to raise $214 million to help fund its planned $2 billion capital expenditure for 2010, according to CEO Rinaldi Firmansyah
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Telkom
Indonesia
Telekomunikasi
bond issue
Comment: Indonesia shows significant growth opportunities for 2010. It is the largest operator in the market, with 87 million customers at the end of 2008 — an annual growth of 37%.
Indonesia telecommunication firm, Telekomunikasi Indonesia (Telkom), is looking to issue bonds in domestic currency denomination, valued at about $214 million.
It is planning to issue the debt in the first half of 2010 to help fund this year’s capital expenditure, which is estimated to reach $2 billion by the end of the year.
Rinaldi Firmansyah, Telkom’s president director, said the company is selecting underwriters for the bond issue and the selection process is set to be completed by the end of January. Six companies are participating in the selection process.
According to Telkom financial director, Sudiro Asno, 60% of cash for capital expenditure will come internally and the remaining 40% from the financial market and loans,
About 70% of the capital expenditure was due to be allocated to Telkom’s cellular business subsidiary, Telkomsel, Asno added. GTB