Indonesian Operator Raising Funds for Network Expansion

Indonesia's largest mobile phone operator, Telkomsel is looking to raise at least US$750 million on the debt market to help finance its capital expenditure this year - which is estimated to be in the range of US$1.5-$1.7 billion.

"The majority of the financing will be in the form of bank loans," Telkomsel's parent company PT Telekomunikasi Indonesia president director Rinaldi Firmansyah told reporters. "We expect to gather about $200 million to $300 million through a combination of Medium Term Notes (MTN) and bonds."

About 40% of the CAPEX is being allocated to network coverage expansion, with roughly a similar amount spent on network quality improvements. The remainder has been allocated for business expansion plans and investments.

Posted to the site on 18th January 2008