Tower Company Owned By Conglomerates Edwin Soeryadjaya And Sandiaga Uno Completes IDR1.45 Trillion Bond Issuance

JAKARTA - The tower company from the Saratoga Group owned by conglomerates Edwin Soeryadjaya and Sandiaga Uno, PT Tower Bersama Infrastructure Tbk (TBIG) has completed the issuance of the V phase II sustainable bonds in 2021 amounting to IDR 1.45 trillion. These debt securities are part of the ongoing public offering program (PUB) worth a total of IDR 15 trillion.

Bond V Phase II, amounting to IDR 1.45 trillion, offers a fixed interest rate of 3.6 percent with a tenor of 370 days. These bonds are equivalent to senior obligations without special guarantees from the company and have interest payments every quarter. These notes will be listed on the Indonesia Stock Exchange (IDX) on December 13, 2021.

According to the plan, the company will use the proceeds from the bond issuance to pay some of the financial obligations of the entity, specifically the revolving loan facility of US$ 200 million and the revolving loan facility of US$ 375 million from the existing credit facilities.

As of September 30, 2021, the company's total loans, if hedged US dollar-denominated loans are measured using the hedging exchange rate, are IDR 27.14 trillion and total senior loans (gross senior debt) are IDR 11.41 trillion.

With a cash balance of IDR842 billion, the total net debt is IDR26.3 trillion and the company's total net senior debt is IDR10.57 trillion.

Using annualized EBITDA for the third quarter of 2021, the ratio of net senior loans to EBITDA is 1.9 times and total net loans to EBITDA is 4.7 times.

"Our business has strong cash flow visibility and strong growth and we look forward to regular access to the rupiah bond market, as our business grows. After this issuance, we still have IDR 12.34 trillion available under this program, which is valid until August 2023", said CFO of Tower Bersama Infrastructure, Helmy Yusman Santoso, in his statement, quoted Monday, December 13.

Previously, Tower Bersama issued global bonds worth US$400 million. The Tower Bersama global bonds have an interest rate of 2.8 percent, which will mature in 2027. The bond offering period lasts until November 2, 2021.

Tower Bersama received a BBB rating from Fitch Ratings regarding the bond issuance. The net proceeds from the bond issuance after deducting costs amounted to US$396 million.

The company plans to use the proceeds from the bond issuance to partially refinance a revolving loan of US$100 million, a revolving loan facility of US$200 million, and a revolving loan of US$375 million. The three loan facilities from banks are still available and can be re-lent.