Indosat increases size of global bond

Indosat increases size of global bond

Dow Jones, Jakarta

PT Indosat, Indonesia's second largest telecommunications
company, has raised the size of its global bond to US$300 million
from the earlier proposed $200 million, people familiar with the
situation told Dow Jones Newswires on Monday.

The company decided to increase the offering following
overwhelming response from investors during roadshows in Asia
last week, the people said.

As of late Friday, Indosat has "secured over half a billion
dollars" of orders for the seven-year bond, one of the people
said.

Indosat is currently continuing its marketing tour in London
and Los Angeles.

Pricing of the bond is expected to take place on Tuesday, the
people said.

Due to the strong demand, Indosat has also tightened the
indicative coupon on the bond to 7.75 percent from the originally
targeted range of 7.75 percent-8.25 percent, one of the sources
said.

The planned bond is part of Indosat's larger refinancing
exercise, involving bonds denominated in both U.S. dollars and
rupiah, as well as a syndicated rupiah bank loan. Indosat is
seeking to raise Rp 2.5 trillion through the rupiah-denominated
bond offering.

The company will use the proceeds from both bonds to partly
refinance its consolidated debt of around $900 million. Plans to
merge its wholly owned cellular units, PT Indosat Mobile Multi
Media and PT Satelindo, into the parent company next month will
help consolidate the debt of the three companies, making it
easier to refinance the borrowing.

Singapore Technologies Telemedia owns a 42 percent stake in
Indosat, while the government has 15 percent.

Moody's Investors Service has assigned a (P)B2 rating with a
stable outlook on the proposed bonds, while Standard & Poor's
Ratings Services rated the bonds B+, also with a stable outlook.
-- Dow Jones