Excelcomindo may trim bonds size

Excelcomindo may trim bonds size

JAKARTA: Indonesia's third-largest cellular operator PT
Excelcomindo Pratama has finalized the coupons on its local bond,
but the company may cut the size slightly due to tepid demand, a
banker familiar with the deal said on Tuesday.

The five-year bond, which will be issued at par, will be split
into two tranches. The coupon on the first tranche is 14.25
percent, which is at the upper end of the 13.75-14.25 percent
indicative range, the banker told Dow Jones.

The second tranche will carry a 14.25 percent coupon for the
first two years, and then 500 basis points above the rate on Bank
Indonesia's three-month SBI notes for the remaining three years.
The company, however, set the floor for the coupon at 11 percent
and the ceiling at 17 percent.

The company managed to attract "just enough subscriptions" at
the recent bookbuilding, the banker said.

As a result, the issue size may be cut to around Rp 1 trillion
rupiah (US$119 million) from the original plan of Rp 1.25
trillion, he added.

Excelcomindo is expected to decide the total issue and tranche
amounts later Tuesday. -- Dow Jones