Apr 12, 2011

Indosat to refinance US$200 mio debt

PT Indosat Tbk (ISAT), Indonesia's second biggest cellular operator in term of subscribers, is keen to refinance a US$200 million debt this year in an attempt to reduce a Rp24 trillion of total debt.
"If the market situation is gone to be better this year, we can put more debts to be refinanced. Our prioritize is paying high cost debt," said Indosat President Director and CEO Harry Sasongko as quoted by Bisnis Indonesia today.
To do so, Indosat is no need an equity injection from its controlling shareholder Qatar Telecom which currently owns 65% shareholding in Indosat.
At end of last year, the operator which has brands such as Mentari, Matrix, and CDMA-based service Starone recorded Rp868 billion cash and cash equivalent.
The operator paid Rp6,7 trillion debt last year, consisting of Rp2.7 trillion to BCA, DBS Bank, and Bank Mandiri. The remaining paid Rp4 trillion bonds which was scheduled to fall due in 2012.

Disclosure: No position at the stock mentioned above.

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