Tower Bersama Infrastructure plans to use much of the new loans to pay back $190 million in outstanding loans to several banks, including Singapore-based DBS Bank and OCBC, among others. (Antara Photo/Joko Sulistyo)

Tower Bersama Takes on $275m in Loans to Pay Off Existing Debt

BY :INVESTOR DAILY

NOVEMBER 10, 2015

Jakarta. Cellular tower builder Tower Bersama Infrastructure has secured $275 million in loans from 10 banks to pay off existing debt due this month, an executive said on Monday.

The new loans will bear interest at 2 percentage points higher than the London Interbank Offered Rate and an upfront fee of 1.25 percent, according to Hardi Wijaya Liong, the Tower Bersama chief executive.

The loans are due in five years and eight months.

The company plans to use much of the funding to pay back $190 million in outstanding loans to several banks, including Singapore-based DBS Bank and OCBC, among others.

Tower Bersama dropped a plan in Septemeber to issue Rp 1 trillion ($73 million) in bonds, citing unfavorable market conditions.

The company’s shares fell 3.3 percent in early trading on the Indonesia Stock Exchange (IDX) on Tuesday, declining faster than the overall index which is down 0.3 percent.

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