Jul 27, 2010

Indosat launches US$650 mio notes

Indonesia's second largest cellular operator PT Indosat Tbk (ISAT) today finally reveals its plan to issue US$650 million of 10 year guaranteed senior notes, maturing on July 29 2020. The notes provide an annual interest rate of 7.375%
Indosat President Director Harry Sasongko Tirtotjondro said the notes will be issued via its wholly owned subsidiary dubbed Indosat Palapa Company BV. 
The senior notes is irrevocable and guaranteed by Indosat. "The notes obtained Ba1 rating from Moody's, BB from Standard and Poor's, and BBB- from Fitch," he said. 
According to him, Indosat will use the notes issuance to refinance debt which will mature in 2010 and 2012. Asian investors are willing to participate 40% of the issuance, 33% will be bought by US investors, and European investors take the remaining.
Citigroup Global Markets Limited is coordinator of joint book runners of the issuance with DBS Bank Ltd, Deutsche Bank, HSBCm and The Royal Bank of Scotland Plc.

Disclosure: No position at the stock mentioned above. 

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