Oct 20, 2011

Smartfren launches Rp500 bio MTN

CDMA-based operator PT Smartfren Telecom Tbk (FREN) has issued Rp500 billion medium term notes (MTN).
Antony Susilo, Director of Smartfren, as quoted by Kontan today, said the operator will use the proceed to refinance debt and the remaining is intended to meet operational expenditure or capital expenditure.
The notes, charging a 14% interest a year, will mature on November 30 2012. Smartfren issued Rp2 trillion convertible bonds in the first half.
Smartfren previously was controlled by PT Global Mediacom Tbk (Bimantara Citra). Howeber, Global Mediacom disposed its stakes in Smartfren to Jerash Investment.  As of June 2011, Smartfreen was crippled with a deficit of Rp4.65 trillion and a total debt of Rp9.79 trillion.

Disclosure: No position at the stock mentioned above.  

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