Indosat sets bond coupons, raises size

Indosat sets bond coupons, raises size

JAKARTA: PT Indonesian Satellite Corp., or Indosat, has raised the size of its planned bond offering to Rp 2.5 trillion from Rp 1.75 trillion due to good demand, sources said.

Five-year tranche of the issue at 12.5 percent and the coupon for the seven-year tranche at 12.875 percent, the sources told Dow Jones.

Indosat had previously indicated the five-year tranche would carry a coupon of 12.25-12.75 percent and the seven-year tranche 12.50%-13.00 percent.

The bonds will be sold at par.

Indosat decided to increase the size of the bond offering after it received around Rp 3.3 trillion in orders during its recent book building, the sources said.

Local ratings agency Pefindo has assigned an AA+ rating to the paper, reflecting the firm's "strong capacity to meet its long- term financial commitments." -- Dow Jones