Telkom issues bonds

JAKARTA: State-owned telecommunications company PT Telekomunikasi Indonesia (Telkom) announced Tuesday its plan to issue fixed rate bonds worth Rp 1 trillion (US$109 million) with five years tenor and indicative coupon rates of between 17-17.5 percent.

The company said in a statement that approximately 84 percent of the proceeds will be used for investment in telecommunications network development using CDMA (Code Division Multiple Access) technology. While 16 percent for access network.

Acting as lead underwriters for the issuance of the rupiah bonds are PT Citicorp Securities Indonesia, PT Danareksa, and PT Andalan Artha Advisindo Sekuritas.

Telkom has been determined to expand its fixed wireless networks in all of its regional divisions by building CDMA digital fixed wireless networks. As CDMA networks are generally more cost-effective and the deployment time for CDMA networks is significantly faster than that of fixed line networks. -- JP