Moratelindo Targets Rp 1 Trillion From Sale of Islamic Bonds
Jakarta. Mora Telematika Indonesia, a Jakarta-based company that provides internet services, data centers and telecommunication interconnectivity, is seeking to raise Rp 1 trillion ($70.2 million) the sale of sukuk ijarah, or asset-backed Islamic bonds, by the end of June, its president director said in a public exposé in Jakarta on Wednesday.
The company, better known as Moratelindo, and which had won some tenders in the Palapa Ring internet development project, plans to use about 85 percent of the proceeds from the bond sale to fund business expansion. This includes projects involving internet backbone infrastructure, inland cable facilities and ducting systems. The remainder will be used for working capital.
The Rp 1 trillion bond, offered in three-year and five-year tenors, is part of a multi-year bond issuance, in which the company seeks to raise a total of Rp 3 trillion.
The Palapa Ring refers to a series of projects involving the installation of fiber-optic cables to provide broadband access in both urban and rural areas in Indonesia.
Moratelindo appointed brokerage companies Sinarmas Sekuritas and Mandiri Sekuritas as underwriters of the bond sale.
The company, according to president director Galumbang Menak, has scheduled a book-building period on June 12-19, before offering the bonds to the public between June 28 and July 1. The bond will be listed on the Indonesia Stock Exchange (IDX) on July 8.
Moratelindo is part of the consortium that won a tender for the "East Package" and "West Package" of the Palapa Ring project, that provided broadband access to remote areas in the easternmost and westernmost parts of the country. According to local media reports, the projects are together worth Rp 6.4 trillion.Tags: