Find Funds To Pay Debts, Tower Company Owned By Conglomerates Edwin Soeryadjaya And Sandiaga Uno Will Issue IDR 15 Trillion Bonds

Illustration. (Photo: Unsplash)

JAKARTA - The telecommunication tower company Saratoga Group owned by conglomerates Edwin Soeryadjaya and Sandiaga Uno, PT Tower Bersama Infrastructure Tbk (TBIG), on this Friday, August 20, listed Shelf-Registered Bonds Phase I 2021 worth IDR 1.2 trillion on the Indonesia Stock Exchange (IDX) .

The bonds issued by TBIG are the first part of the Shelf-Registered Public Offering (PUB) of Shelf-Registered Bonds V with a total issuance value of Rp15 trillion. These bonds were issued scripless and offered at a value of 100 percent of the principal amount of the bonds with a fixed interest rate of 4.25 percent per annum and a term of 370 calendar days from the issuance date.

Bond interest is paid quarterly, where the first bond interest will be paid on November 19, 2021, while the last bond interest along with the repayment of the bonds will be paid on August 29, 2022.

"The use of funds from this offering, after deducting issuance costs, will be used to pay part of the financial obligations of the subsidiaries, in particular the Revolving Loan Facility of US$ 375 million (Rp 5.4 trillion) from existing Credit Facilities," said the Chief Financial Officer ( CFO) TBIG, Helmy Yusman Santoso in his official statement.

The company entrusts the implementing guarantor of the bond issuance, namely PT CIMB Niaga Sekuritas, PT DBS Vickers Sekuritas Indonesia, PT Indo Premier Sekuritas, PT UOB Kay Hian Sekuritas, with the trustee of PT Bak Rakyat Indonesia (Persero) Tbk (BBRI).

For information, as of March 31, 2021, the company's total gross debt, if the portion of loans denominated in US dollars that has been hedged is measured using the hedging rate, is Rp26.83 trillion and the total senior loans (gross senior debt) amounting to Rp11.57 trillion.

Total gross debt (gross debt) and total senior debt (gross senior debt) in the first quarter of 2021 increased due to the withdrawal of bank loans to finance the purchase of 3,000 tower assets from PT Inti Bangun Sejahtera Tbk (IBST) which was placed as cash balance pending the completion of the asset purchase transaction. this is in early April 2021.

Meanwhile, the cash balance reached IDR 5.11 trillion with a total net debt of IDR 21.72 trillion and the company's total net senior debt of IDR 6.46 trillion.

Net senior borrowings to EBITDA ratio (earnings before interest, tax, depreciation and amortization) was 1.3x and net borrowings to EBITDA was 4.4x in the first 3 months of the year.