Telkomsel to seek $750 million in financing

JAKARTA (Jakarta Post) : Indonesia's biggest mobile telephone operator Telkomsel plans to seek a minimum of US$750 million to help finance its capital expenditure this year, which is expected to range from $1.5 billion to $1.7 billion.

"The majority of the financing will be in the form of bank loans," Telkomsel's parent company PT Telekomunikasi Indonesia (Telkom) president director Rinaldi Firmansyah told reporters Friday.

"We expect to gather about $200 million to $300 million through a combination of Medium Term Notes (MTN) and bonds."

Rinaldi said Telkom planned to spend around $800 million this year and would seek half of it through financing.

"For Telkom, the combination of MTN and bonds would likely amount to $100 million, while the remainder would come from bank loans."

Telkomsel president director Kiskenda Suriahardja said about 40 percent of the total capital expenditure would be used to finance the expansion of its network coverage.

He added that 45 percent would be allocated to a service quality enhancement program and the rest would be used on strategic investments in related businesses. (and)