ICON+ to issue Islamic bonds

ICON+ to issue Islamic bonds

JAKARTA: PT Indonesia Comnets Plus (ICON+) will issue up to Rp 100 billion (US$10.2 million) in Islamic bonds in September to expand its telecommunications network.

The company, which is a unit of state-run electricity company PT Perusahaan Listrik Negara (PLN), said on Friday that it has named PT Andalan Artha Advisindo as the lead arranger for the issue of the five-year notes.

The company has not decided the returns for the bonds yet.

Islamic bonds are structured based on religious principles. As interest payments are prohibited, Islamic bonds make regular payments through profits or cash flows, such as rentals.

The company, which was established in 2000, has a broadband fiberoptic network covering Java and Bali, a satellite-based Very Small Aperture Terminals covering areas outside Java and Bali, and the rights to use its parent's power lines to provide broadband Internet services. -- Dow Jones