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