September 20, 2002 9/20/02 3:18:07 PM
Telkom Might Issue Dollar Denominated Bond in 2003

PT Telekomunikasi Indonesia Tbk (TLKM) might issue a dollar denominated bond again next year, as stated by Telkom’s Head of investor relations, Setyawan Sulistyono in the interview with Bloomberg.

“One of the choices is to sell bond. We might do it if the market is good” said Setyawan.

“We are also conduct a cooperation program with vendor to build new telephone network” he adds.

Last June, the bond issuance proposal at the amount of US$150M was refused by government as the biggest shareholders, because it will burden Telkom’s cash flow in the future.

The choice of financing through bond is getting interesting for Indonesian companies, because the domestic interest rate us sharply decrease. The one-month SBI interest rate sharply decrease, more than 400 basis points early this year.

Added by the decreasing inflation and strengthening Rupiah exchange rate, the financing source is now cheaper.
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