XL Axiata Making Push to Refinance Its Debts, Accelerate Replayments
XL Axiata, the country’s third-largest telecommunication provider, is trying to secure a bank loan by the end of the year so it can refinance debts that will mature in 2012, a company executive said on Friday.
Johnson Chan, senior vice president for corporate finance at XL, said the company was in preliminary discussions with several banks.
“We have several offers, but the consideration now is on the lending rate of the loan,” Johnson said, declining to identify the lenders. He said the company was looking for a loan with tenor of at least three years.
XL plans to use the loan to repay debts, which include bonds and bank loans, that come due next year.
In 2007, the company sold a five-year bond valued at Rp 1.5 trillion ($171 million).
XL Axiata, which is controlled by Malaysia’s Axiata Group, also has bank loans that will mature next year. Johnson did not elaborate on the total amounts of the loans.
Hasnul Suhaimi, the president director of XL, said the company was still calculating the total amount of refinancing due next year. XL’s financial report said that by the end of the first half of this year, its total long-term debt was equivalent to about Rp 7.63 trillion.
Johnson said the company had recently made a Rp 960 billion payment on its debt to Bank Mandiri. XL initially secured Rp 4.4 trillion in loans from Bank Mandiri in 2007.
The payment it made in early September was funded by a Rp 1 trillion loan XL secured from the Bank of Tokyo-Mitsubishi.
“The rate on the Mandiri loan was pretty high. If possible, we hope to accelerate the payment,” Johnson said.
Bank Mandiri set the rate on its loan to XL at the Jakarta interbank offered (Jibor) rate plus 1 percent. The three-month Jibor rate is now 6.1 percent.
Shares of XL Axiata fell 0.5 percent to Rp 4,975 on the Indonesia Stock Exchange on Friday. It has lost 5.2 percent so far this year compared to the benchmark Jakarta Composite Index’s 4.2 percent decline.