Tower Bersama secured in 2013 approval from the Financial Services Authority to raise up to Rp 4 trillion from bonds. But the company has only raised Rp 870 billion so far and the offer expires at year-end. (ID Photo/David Gita Roza)
Tower Bersama Cancels $68m Bonds Plan
BY :FARID FIRDAUS
SEPTEMBER 30, 2015
Jakarta. Listed telecommunications tower operator Tower Bersama Infrastructure has dropped its plan to raise Rp 1 trillion ($68 million) from issuing bonds next month, citing unfavorable market conditions.
"According to suggestions from securities firms and the fact that the coupon of benchmark government bonds is high, we have decided not to continue the bond issuance plan," Tower Bersama's finance director Helmy Yusman Santoso said on Tuesday.
The company initially planned to use proceeds from the issuance to pay back $200 million in outstanding loans due by the end of this month.
Tower Bersama will instead use its internal cash and loans from banks to meet their obligation, Helmy said.
The company may seek to issue bonds in the second quarter of next year, he said.
Tower Bersama in 2013 secured approval from the Financial Services Authority (OJK) to raise up to Rp 4 trillion ($273 million) from bonds. But the company only raised Rp 870 billion during the time and the approval expires at the end of the year.
Indo Premier Securities is among the underwriters for the issuance.