BTEL Gains Trust of International Investors

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PT Bakrie Telecom Tbk (BTEL) has gained the trust from international investors in the issuance of a global bond worth US$250 million. Investors are from the U.S., Europe, and Asia. The bonds were issued by BTEL’s wholly owned subsidiary Bakrie Telecom Pte. Ltd., a company incorporated under the laws of Singapore, and is guaranteed by BTEL, as the shareholder of Bakrie Telecom Pte. Ltd., and the Company's other Indonesian subsidiaries.

“The trust investors have shown us is really motivating because this has happened amidst the volatile market. We will use the funds from this global bond for refinancing and our capital expenditure in the broadband wireless business,” said BTEL President Director and CEO Anindya Bakrie.

The use of proceeds includes US$175 million to refinance existing debt, including a bridge loan for broadband wireless capital expenditure as much as US$ 45 million from Credit Suisse, Morgan Stanley and Bank of America Merril-Lynch, and US$ 14 million to the interest reserve account. The remaining funds will be used to fund capital expenditure for expansion into the broadband wireless, along with general corporate purposes.

“With this good result, our financial resources are ready to sustain our future business in the broadband wireless industry through BTEL’s subsidiary, Bakrie Connectivity (BCON),” added Anindya.

This is an industry with a promising future because the penetration rate in Indonesia is still low, only 10 percent, in comparison with the US and China each with penetration rates of 70 percent and 50 percent, respectively.

The US$250 million global bond is a five-year bond with interest of 11.5 percent. [END]

For further information, please contact:
Aurelius Noorman Ijlas
Corporate Communication PT Bakrie Telecom Tbk
021-92644654/noorman@bakrietelecom.com