Excelcomindo to issue Rp1.25t bond

Excelcomindo to issue Rp1.25t bond

JAKARTA: Indonesia's third-largest cellular phone operator, PT
Excelcomindo Pratama, will issue around Rp 1.25 trillion bond in
October to refinance its debt and support capital expenditures, a
source familiar with the plan said late on Tuesday.

The source told Dow Jones Newswires the bond will have a five-
year tenor and will be listed on the Surabaya Stock Exchange.

The company plans to spend $200 million this year to expand
its cellular phone network, the source said.

The company has named PT Bahana Sekuritas and PT Danareksa
Sekuritas as joint lead underwriters for the issue, the source
said.

Further details were unavailable.

Excelcomindo's director Rudi Antara declined to comment.

However, Surabaya Stock Exchange President Director Hindarmoyo
Kinuri said Excelcomindo has informed the nation's second-largest
exchange about its plan to list the bond.

A slew of Indonesian companies are tapping the debt market as
declining interest rates boost demand for bonds. Local companies
are also resorting to the bond market as local banks remain
reluctant to lend after many of their loans turned sour following
the 1997-98 Asian financial crisis.--Dow Jones