TV station 'RCTI' to issue 5-year bonds worth Rp 550b

The Jakarta Post, Jakarta

PT Rajawali Citra Televisi Indonesia (RCTI), the country's first privately owned television company, announced on Tuesday that it would issue five-year bonds worth Rp 550 billion (US$64.7 million) to help refinance its maturing debts.

RCTI president Bambang Harry Tanoesoedibdjo said during a presentation that proceeds from the bond issuance would be used mostly to convert the company's medium-term debt, worth Rp 500 billion, into longer-term debt at lower interest.

He added that the remaining proceeds would be used for investment in the company's broadcasting systems.

The bonds, which carry an indicative interest rate of 13.5 percent to 14 percent, have received an A- rating with stable outlook from local rating agency PT Pefindo.

The bonds will be on offer from Oct. 1 through Oct. 3, and are scheduled to be listed on the Surabaya Stock Exchange on Oct. 9.

PT Andalan Artha Advisindo Sekuritas and PT Mandiri Sekuritas have underwritten the issue.

For this year, RCTI is aiming to increase its revenue to Rp 1.1 trillion and its net profit to Rp 155 billion. Last year, the company booked revenue of Rp 1 trillion and a net profit of Rp 82 billion.

In the first semester of this year, RCTI posted a revenue of Rp 490 billion and a net profit of Rp 82 billion.

RCTI claimed it was the top advertising earner of the country's television stations during the first half of this year, with a total ad revenue of Rp 478 billion.

RCTI's ad income is slightly higher than that of its rivals, Indosiar and SCTV, which respectively booked Rp 477 billion and Rp 349 billion in ad revenue over the same period.

Currently, RCTI, which is owned by the Bimantara Group, has a total of 47 relay stations covering 274 cities across the country, or 77.5 percent of the country's total population.