XL Axiata Selling Towers to Pay Down Debt
Published on: 30th Mar 2016
Note -- this news article is more than a year old.
Indonesia's XL Axiata has announced that it is selling 2,500 of its towers to the local tower operator, Protelindo for Rp 3.5 trillion (USD267.2 million).
The funds from the sale will be used to pay down around a tenth of its debt, which currently stands at Rp 26.9 trillion.
"The sale of these towers is not only to help us cut our rupiah debt, but is also in line with our 3R strategy, which is revamp, rise and reinvent, that we have implemented since last year," XL Axiata finance director Mohamed Adlan bin Ahmad Tajudin said.
XL Axiata has been reducing its exposure to currency risk by paying down foreign-denominated debt and refinancing debt in local currency.
The mobile network has previously sold 3,500 towers, and now owns a reserve of 4,000 towers which it says it has no plans to sell as they are key assets for the company.