Indonesia's Indosat considers alternative financing options

15:17, June 23, 2010      

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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.

Source:Xinhua

(Editor:黄蓓蓓)

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