Indosat names advisors for debt restructuring<\/p>\n
PT Indonesia Satellite Corp. has mandated four financial
\nadvisers to restructure the company's debt, a process that is
\nexpected to be completed by the end of the year.<\/p>\n
Under the debt restructuring, Indosat will issue new bonds at
\ncheaper interest rates to refinance existing debt.<\/p>\n
The advisers are Goldman Sachs Group Inc., ING Groep N.V.,
\nBarclays Capital, and a local securities firm PT Andalan Artha
\nAdvisindo.<\/p>\n
\"Indosat's board of commissioners has named the four financial
\nadvisers for Indosat's debt restructuring plan,\" a deputy state
\nenterprise minister, Roes Aryawidjaya, told Parliament in a
\nhearing session Thursday.<\/p>\n
Roes is also a commissioner at Indosat, the nation's second-
\nlargest telecommunications company.<\/p>\n
Indosat plans to issue up to US$300 million in international
\nbonds and Rp 3 trillion ($356 million) in local bonds later this
\nyear to refinance some of the $900 million debt coming due.<\/p>\n
The company's debt load increased in 2002 when it bought PT
\nSatelit Palapa Indonesia, or Satelindo, the nation's second-
\nlargest cellphone company. Much of Satelindo's $360 million debt
\nis in short-term borrowings, including bonds and bank loans.<\/p>\n
Singapore Technologies Telemedia, a Singapore government-
\ncontrolled company, bought a 41.94 percent controlling stake in
\nIndosat late last year. Indonesia's government owns a 15 percent
\nshare in Indosat.<\/p>\n
A slew of Indonesian companies have been able to issue
\ninternational bonds this year to foreign investors hungry for
\nhigh-yielding assets. Indonesia's ability to get inflation under
\ncontrol, and bring down interest rates, has helped spark interest
\nin Indonesian assets. -- Dow Jones<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indosat-names-advisors-for-debt-restructuring-1447893297",
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"sponsor": "Okusi Associates",
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