Jakarta. State-owned telecommunications company Telkom Indonesia has raised $100.7 million from medium-term notes and shariah medium-term notes last week to strengthen the company's capital profile.
The one- and three-year notes were offered at par, Telkom financial director Harry Zen said in a statement on Thursday (06/09).
The note issuance was part of the company's efforts to strengthen its capital and reprofile its debt by swapping debt-carrying floating interest rates with those that have fixed rates.
The proceeds are expected to support the company in achieving its targets, Harry said.
"All the funds raised from the medium-term notes will be used to develop access networks and 'Fiber to the Home' broadband networks," Harry said.
Telkom raised Rp 758 billion ($51.9 million) from three series of medium-term notes; Rp 262 billion from Series A, Rp 200 billion from Series B and Rp 296 billion from Series C.
Telkom also raised Rp 742 billion from the shariah medium-term notes, divided into three categories. It raised Rp 264 billion from Series A, Rp 296 billion from Series B and Rp 182 billion from Series C notes.
Rating agency Pemeringkat Efek Indonesia (Pefindo) gave Telkom's conventional notes an idAAA (Triple A) rating, while its shariah-compliant debt notes were rated idAAAsy (Triple A shariah).