Indonesian Tower Operator Swaps Bank Loan for Bonds
Published on: 29th Jan 2014
By: Ian Mansfield
Indonesian tower network operator Protelindo has issued a Rp 1 trillion (USD81.7 million) bond to help repay its existing Rp 3 trillion bank loan.
The bank loan was taken out with Bank Negara Indonesia [BNI], and the bond issuance will help fill the company's gap in funding the debt repayment. The debt was not due until 2018, but the company decided to repay early to take advantage of the fixed interest rates on the bonds.
The company is one of the country's largest tower operators, and owned just under 9,400 towers, as at the end of last September.
The company expects to generate free cash flow of also around Rp 3 trillion this year to fund expansion.