Indosat plans Rp 1.75t bond

Indosat plans Rp 1.75t bond

JAKARTA: Indonesia's second-largest telecommunications company
PT Indonesian Satellite Corp. On Monday said it's planning to
sell Rp 1.75 trillion (US$207 million) worth of bonds to local
investors later this year to refinance the debt of cellular unit
PT Satellite Palapa Indonesia, or Satelindo.

The amount is less than the Rp 3 trillion Indosat mentioned
previously. The company's brief statement didn't explain the
smaller offering; company officials couldn't be immediately
reached for comment.

The new bonds will carry maturities of five and seven years.
PT Andalan Artha Advisindo, PT ING Securities Indonesia will
jointly lead underwrite the issue. The timing and coupon rates
haven't yet been finalized, Indosat said.

It said the local bond issue would allow the company to extend
its loan tenors, take advantage of the low interest rate
environment, and reduce risks stemming from exposure to foreign
currency and interest rate fluctuations.

Besides the rupiah bond issue, Indosat officials have said the
company also plans to offer up to $300 million in international
bonds later this year to refinance some of the $900 million debt
coming due.

The company's debt load increased in 2002 when it bought
Satelindo, the nation's second-largest cellphone company. Much of
Satelindo's $360 million debt is in short-term borrowings,
including bonds and bank loans. -- Dow Jones