Satelindo plans to issue bonds

Satelindo plans to issue bonds

JAKARTA (JP): After suspending its plan to issue debt instruments last year, PT Satelindo has decided to issue convertible bonds in the second semester of this year to generate between US$300 million and $400 million.

Satelindo's president, Iwa Sewaka, said yesterday that convertible bonds are the best debt instrument for Satelindo to generate funds for its operations.

"At the moment, when at least 10 world-class telecoms firm are floating their shares on international stock markets, issuing convertible bonds is the most appropriate way for us to look for additional funds," he said.

He said that Satelindo had received a number of proposals from both domestic and foreign firms to arrange the bond issuance.

Satelindo officially took over the lessees of the Palapa-B2P satellite's transponders on March 16 by providing them with Palapa-C1 transponders. The Palapa-B2P was owned and operated by the state-owned domestic telecommunications provider PT Telkom, while the Palapa-C1 is owned and operated by Satelindo.

Satelindo, which runs international calls and Global System for Mobile (GSM) cellular telephones, has invested millions of dollars in its telecommunications projects, which include: the supply, launching, insurance and other arrangements for its two Palapa-C satellites; the construction of telephone gateways and earth stations; and the establishment of cellular networks.

The company has received $180 million in commercial loans, which were repaid when DeTeMobil of Germany acquired 25 percent of its shares for $586 million last year.

Iwa said yesterday that his company planned to look for another $230 million in soft loans in the 1996-1998 period to finance its GSM expansion.

"This year alone, we expect to get $120 million from Paribas Bank of France and KFW of Germany for the cellular project," he said.

Satelindo officially joined yesterday with KualiVa, an alliance of six businesses offering a new debit card with special services to customers.

The KualiVa card was introduced last August by Gramedia Bookstore, Hero Supermarket, Sempati Air, Matahari Department Store, Fuji Image Plaza and Bank Bali.

Satelindo will now offer special services to customers through KualiVa memberships. (icn)