Telkom issues bonds

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