Indonesian mobile operator PT Indosat is to get a USD450 million revolving credit facility with tenure of less than five years from a number of banks, according to investor relations officer Andromeda Tristanto as quoted by Kontan. The official says that Indosat is in the process of finalising the agreement which will be secured in 3Q14, with the funds set to be used to refinance debt due this year. The operator is known to have IDR2 trillion (USD171.23 million) in debt that matures in H2 2014.
According to TeleGeography’s GlobalComms Database, Indosat – a subsidiary of Qatar-based telecoms group Ooredoo – continues to face an intensely competitive domestic market, reflected in lower revenues for the first half of 2014 at QAR3.609 billion (1H13: QAR4.375 billion) and EBITDA decreasing by 21% to QAR1.659 billion due to increased cost of sales and operational expenditure. Indosat’s EBITDA margin decreased to 46% compared to 48% for 1H13. At 30 June 2014 Indosat’s total customer base stood at 55 million, compared to 56.6 million a year earlier.