ASEAN KEY DESTINATIONS
Tower Bersama said to be seeking $1b loans
Publicly listed telecommunication tower company Tower Bersama Infrastructure is reportedly looking for US$1 billion multi-tenor financing, only months after the company secured a $300 million loan facility back in July.
The company is currently approaching its existing lenders for the financing, Reuters has reported, citing unidentified sources.
Tower Bersama’s executives could not be reached for comment when contacted on Friday, with the publicly listed company’s president director, Heman Setya Budi, refusing to confirm or deny the report.
The company secured in July $300 million in revolving credits, comprising a $215 million tranche that involved ANZ, Bank of Tokyo-Mitsubishi UFJ, CIMB Bank, CTBC Bank, Credit Agricole CIB, DBS Bank Deutsche Bank, HSBC, JP Morgan, OCBC Bank, RBS, Sumitomo Mitsui Bank Corp. and UOB.
Meanwhile, the remaining Rp 1 trillion ($82 million) tranche involved Bank Central Asia (BCA), Bank Negara Indonesia (BNI) and Bank Danamon Indonesia.
The $300-million facility was sought to refinance the company’s outstanding debts as well as to support its organic growth.
Tower Bersama has yet to announce its first nine-month financial results. According to the company’s first-half financial sheet, its total liabilities as of June stood at Rp 17.07 trillion while its equity amounted to Rp 3.89 trillion.
Fitch Ratings last week affirmed Tower Bersama’s Long-Term Issuer Debt Ratings at “BB” and the National Long-Term Rating at “AA-” with stable outlooks. Fitch said the company’s high leverage limited any positive rating potential.
The ratings were made after a deal with state-run telecommunications provider Telekomunikasi Indonesia (Telkom), which swapped Telkom’s 49 percent stake in Mitratel for a 5.7 percent stake in Tower Bersama.
Under the deal, Telkom also has a two-year option to swap its remaining 51 percent stake in Mitratel for an approximately 8 percent share in Tower Bersama.
The total transaction value for a 100 percent stake in Mitratel is estimated at Rp 11.07 trillion, including Rp 2.7 trillion in Mitratel’s net debt.
The deal makes Tower Bersama Indonesia’s largest independent telecommunications tower provider.
According to its first-half financial results, Tower Bersama saw its revenues rise by about 24.4 percent to Rp 1.58 trillion from Rp 1.27 trillion recorded in the same period last year.
On net profits, the company, whose shares are mostly owned by Saratoga Capital and Provident Capital, saw its bottom line rise 21.34 percent in the January-June period this year to Rp 663.65 billion compared with the same period last year.
Shares of Tower Bersama, which are traded on the Indonesia Stock Exchange (IDX) under the code TBIG, traded at Rp 9,050 at close on Friday, up 3.72 percent from the previous day.
Tower Bersama, which has a Rp 43.41 trillion market capitalization, has seen its stock surge 56 percent so far this year, easily outstripping the broader Jakarta Composite Index’s (JCI) 16.7 percent advance.--The Jakarta Post
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