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