Jan 27, 2011

Bakrie Telecom sells US$140 mio bond

CDMA-based operator PT Bakrie Telecom Tbk (BTEL) grabbed US$140 million from 5-year bond issuance. Bakrie Telecom Director of Corporate Service Rakhmat Junaidi said the company offered 9.463% interests, much lower than previous bond issuance of 11.5%.
“Morgan Stanley and Credit Suisse as our underwriters informed that we are oversubscribed 7 times or equivalent to US$1 billion,” as he said to press, yesterday.
The bond, he continued, was offered to international investors in Asia, Europe and U.S. investor allocation were 49% from Asia, 38% from Europe and 13% from U.S.
Junaidi said the company was really pleased with the bond result.
“It showed how international markets confidence is high toward our operating performance and BTEL financial. This is evidenced by our earlier bond issuance that was traded at a premium price.”
The proceeds of this corporate act will be used to pay company debt and to support company’s aggressive move in the world of CDMA broadband technology.
 
Disclosure: No position at the stock mentioned above.

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