XL Axiata, Indonesia's second-largest mobile phone operator is planning to raise Rp 2.18 trillion ($163 million) from selling Islamic bonds this month to refinance its debt and fund its working capital.(Antara Photo/Dhoni Setiawan)

XL Axiata Mulls $500m Tower Sale to Clear Debt

BY :INVESTOR DAILY

NOVEMBER 05, 2015

Jakarta. XL Axiata, the country's second largest telecommunication operator by subscribers, plans to raise $500 million from selling its telecommunication towers as part of an effort to repay its debt to Malaysian parent company Axiata.

The company has yet to reach a deal with prospective buyers.

"We are still evaluating the plan," XL's finance director Mohamed Adlan said on Wednesday, confirming reports first made by the Wall Street Journal.

The company has $500 million in outstanding debts to Axiata, pilling pressure on its balance sheet as the US dollar gains strength against local currency.

XL has said that it would be prepared to repay its debts using internal funds and may negotiate for a deadline extension.

The company sold 3,500 of its towers for $350 million last year to local telecommunications tower operator Solusi Tunas Pratama.

XL managed to pay back $580 million in unhedged debt by October, leaving its total outstanding dollar-denominated debt at $938 million.

The company booked a net loss of Rp 506 billion ($37 million) in the first nine months of this year, narrowing from a Rp 838 billion net loss in the same period last year.

Its revenue has dropped 4 percent to Rp 16.98 trillion from Rp 17.6 trillion last year.

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