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