Moratelindo lists Rp 1t worth of bonds
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