SingTel – BT
Telkomsel considering bond sale this year
PT Telekomunikasi Selular, Indonesia’s biggest mobile-phone operator, is considering selling bonds this year to fund spending, an official at parent company PT Telekomunikasi Indonesia said yesterday.
Telkom, as the parent company is known, plans capital spending of US$2 billion this year, 70 per cent of which will be used to expand its cellular business, Telkom president director Rinaldi Firmansyah told reporters here.
‘If market conditions improve, the bonds will be an alternative to fund the capital expenditure,’ Mr Firmansyah said. He didn’t provide the size and timing of the bond sale.
Telkom this month agreed to borrow about 5 trillion rupiah (S$647 million) from a group of banks including PT Bank Rakyat Indonesia and PT Bank Negara Indonesia, Mr Firmansyah said on March 2. The company aims to attract more subscribers to raise revenue by as much as 10 per cent this year, he said.
Telkomsel, 35 per cent owned by Singapore Telecommunications Ltd, had 65.3 million subscribers on Dec 31, 2008, up 36 per cent from 2007, the company said on Feb 12. Telkom shares climbed 3.5 per cent to 7,350 rupiah yesterday, outpacing a 3.4 per cent increase in the benchmark Jakarta Composite Index. — Bloomberg