Excelcomindo repays $293m loans

Excelcomindo repays $293m loans

JAKARTA: PT Excelcomindo Pratama, Indonesia's third-biggest cell-phone operator, repaid about US$293 million of bank loans, allowing the company to focus on expanding business.

This week's payment came from the sale of $350 million of bonds earlier this month, Fritz Simandjuntak, an Excelcomindo spokesman, said.

"Refinancing is positive, as it will enable the company to focus on expanding its network now, taking advantage of the fast- growing industry," said Marsangap Tamba, who helps manage the equivalent of $851 million at Manulife Asset Management in Jakarta.

Jakarta-based Excelcomindo had about 2.9 million subscribers by the end of last year and planned to increase it by 45 percent to as much as 4.2 million this year, Rudiantara, a company director, said in a telephone interview.

After the payment, some securities and other collateral held under the loan facility are free for use by the company, Simandjuntak said in the statement. The rest of the proceeds will be used to fund expansion of the cellular network.

The Jakarta-based company's debt was reduced to 1.25 trillion rupiah ($148 million) and $350 million after the payment, the company said.

Excelcomindo sold $350 million of bonds earlier this month in its first overseas debt sale. Credit Suisse First Boston, Morgan Stanley and UBS AG arranged the sale. -- Bloomberg