PT Tower Bersama Infrastructure Tbk Announces Shareholder Return Policies
Posted on 23rd November 2015
JAKARTA, 23 November 2015 – PT Tower Bersama Infrastructure, Tbk. ("TBIG”) announces that after successfully completing its two major debt fundraising exercises in 2015, TBIG is poised to initiate a more formal shareholder return policy from 2016 in the form of substantial dividends and/or share buybacks.
Shareholder Return Program
Hardi Wijaya Liong, CEO of TBIG, remarked, “Tower Bersama has been and always will be very focused on prioritizing a consistent, low-risk structure for our debt providers. We focus on long-term funding and adhere to a very conservative hedging policy matching our debt profiles. Our infrastructure business provides fixed and growing revenues from the leading mobile operators under 10 year guaranteed contracts that are amply able to cover all of our indebtedness. Now, our large size and high margins provide very sizeable cash flows on a predictable, recurring basis. Therefore, we have sufficient resources to undertake substantial shareholder initiatives such as dividends and share buybacks while still not compromising our credit strength."
Helmy Yusman Santoso, CFO of TBIG added, “Of course, any new shareholder initiatives will not change our creditor focus. Standard leverage metrics applied to our telecom industry customers, such as debt to EBITDA, do not accurately reflect the unusual benefit of our 10 year, guaranteed revenues, our low and predictable opex and the fact that almost no capex is required to sustain those predictable cash flows. Fortunately, our credit providers analyze these guaranteed revenues and commensurate cash flow servicing and as such, continue to be comfortable with our current leverage at ~5x net debt to annualized EBITDA as evidenced by our highly successful bond issuance and syndicated debt raising this year."
Hardi Wijaya Liong further remarked, "As our future capex is always discretionary, we will continue to use debt financing to fund our ongoing capex – and per our long-standing policy – only when supported by a new 10-year customer contract. In this way, our leverage is always incurred only when driven by a long term contract which means our credit will never become unbalanced. With this contractual revenue and minimal ongoing expenses, we can forecast our minimum cash flow and use excess amounts for shareholders. In 2016, we expect to spend around IDR 1 trillion on dividends and/or share buy-backs under our approved share buyback program when market circumstances are favorable. We expect this amount to grow each year and do not expect this policy to materially impact the leverage ratios as calculated by our debt providers.”
About PT Tower Bersama Infrastructure Tbk:
PT Tower Bersama Infrastructure Tbk (“TBIG”), is a provider of telecommunications infrastructure for the placement of BTS by telecommunications operators in Indonesia. TBIG is publicly listed on the Indonesian Stock Exchange and is majority owned by Saratoga Group and Provident Capital.
For more information contact:
Helmy Yusman Santoso – Tower Bersama Group
Phone: (62-21) 571 1946
Phone: (62-21) 571 1946