Indonesia's Indosat considers alternative financing options

15:17, June 23, 2010      

Email | Print | Subscribe | Comments | Forum 

Indonesia's second-largest telecommunication provider, PT Indosat, said the uncertainty over austerity measures implemented in eurozone economies may force the firm to consider alternatives to financing schemes other than bond issuance, local media reported here Wednesday.

The statement comes as the firm has planned to issue global bonds worth up to 700 million U.S. dollars with 10-year maturity later this year.

"The eurozone crisis has increased the likely interest costs on bond offerings," finance director Peter Wladyslaw Kuncewicz was quoted by the Jakarta Post s saying.

The capital gained from the bond sale will pay off its 450 million U.S. dollars of maturing debts in November and the rest will be used to support its capital expenditures.

"We have a strong cash position at this point in time. We're just waiting for the right moment. We don't have to panic. We don' t have to rush into the market," Kuncewicz said.

If eurozone economic recovery fail to materialize as planned, which would translate into investors' risk appetite, Indosat might consider making bilateral loans.

"We are still studying (alternative financing options). We will choose the option that has the lower interest and efficient cost," Indosat president director Harry Sasongko said.



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
  • A visitor passes by in the exhibition of Istanbul design week on Sept. 28, 2011 in Istanbul, Turkey. Istanbul design week will be hosting designers and design exhibitions from around the world in Istanbul from Sept 28 to Oct 2 with the participation of 25 countries. (Xinhua/Ma yan)
  • Red flag flies at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 28, 2011. A spokesperson with China's manned space program said Wednesday that fuel has been injected into the Long March-2FT1 carrier rocket in preparation for launching the Tiangong-1 space module Thursday evening as planned. (Xinhua/Wang Jianmin)
  • A militant loyal to the Libyan National Transitional Council (NTC) waves in a tank near Bani Walid, one of the pro-Muammar Gaddafi strongholds, on Sept. 28, 2011. (Xinhua/Hamza Turkia)
  • Jewish worshippers pray at the Western Wall, Judaism's holiest prayer site, in Jerusalem's Old City on Sept. 28, 2011, ahead of Rosh Hashanah, the two-day Jewish new year which will begin at sunset on Sept. 28 and conclude at nightfall on Sept. 30. (Xinhua/Muammar Awad)
  • High school student Johanna Choapa is helped by her father after announcing the end of hunger strike in Santiago, capital of Chile, on Sept. 28, 2011. The end of the strike took place to make way for a dialogue with the government, seeking to resolve the four-month crisis in the education sector. (Xinhua/Jorge Villegas)
Hot Forum Discussion