Mo­ratelindo lists Rp 1t worth of bonds

The Jakarta Post - - BUSINESS -

JAKARTA: Broad­band provider PT Mora Telematika In­done­sia (Mo­ratelindo) listed bonds worth Rp 1 tril­lion (US$73.8 mil­lion) on the In­done­sia Stock Ex­change (IDX) on Thurs­day.

It has is­sued two se­ries of debt pa­per, namely Se­ries A to­tal­ing Rp 540 bil­lion and Se­ries B worth Rp 460 bil­lion. The for­mer has a three-year tenor with a 9.9 per­cent an­nual coupon, while the lat­ter has a five-year tenor with a 10.5 per­cent an­nual coupon.

Mo­ratelindo pres­i­dent di­rec­tor Galum­bang Me­nak said the bonds had been over­sub­scribed by 1.4 times dur­ing the book build­ing process, thanks to the firm’s strong cash flow and pos­i­tive fi­nan­cial track record.

Lo­cal rat­ing agency PT Pe­mer­ingkat Efek In­done­sia has as­signed an A rat­ing to the debt pa­per.

The telecom­mu­ni­ca­tion in­fra­struc­ture de­vel­oper has ap­pointed PT Ba­hana Seku­ri­tas and PT Bank Mega as lead un­der­writ­ers.

The bond is­suance was nec­es­sary to help ex­pand the firm’s ser­vices and re­pair ex­ist­ing in­fra­struc­ture, Galum­bang said.

Mo­ratelindo plans to use 10 per­cent of the pro­ceeds for in­vest­ment and the re­main­der for other cap­i­tal ex­pen­di­ture.

“This era of dig­i­tal­iza­tion is promis­ing for in­fra­struc­ture providers like us,” said Galum­bang.

The com­pany is in charge of the western and eastern sec­tions of the Palapa Ring broad­band net­work de­vel­oped by the gov­ern­ment and the pri­vate sec­tor. — JP

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