Indosat injects $75m into Satelindo

Indosat injects $75m into Satelindo

JAKARTA: PT Indonesian Satellite Corp., or Indosat, has injected US$75 million into its unit PT Satelit Palapa Indonesia, or Satelindo, Indosat Chief Executive Widya Purnama told reporters Tuesday.

Purnama said the funds, which are aimed at reducing the debt of the cellular unit, came from a bridging loan from PT Bank Central Asia.

The loan has a tenure of 6 months, carrying an 8.6 percent interest rate.

Indosat holds 77 percent of Satelindo, the country's second largest cell phone operator.

He said Indosat is still mulling a plan to issue U.S. dollar bonds to refinance the loan when it comes due in January.

Purnama didn't provide further details. -- Dow Jones