TBIG Announces Its Closing of its Latest Debt Facility

Posted on 9th November 2015

JAKARTA, 9 November 2015 - PT Tower Bersama Infrastructure, Tbk. ("TBIG") executed a USD 275 million bank loan today as its lowest cost and longest dated bank facility ever.

The facility was initially planned to be a USD 200 million facility but was upsized to USD 275 million after commitments received from banks made the facility more than four times oversubscribed.  All ten relationship banks invited to seek approval for the facility provided a commitment of at least USD 25 million each.  The facility has a bullet maturity at 5 years and 8 months and is priced at LIBOR plus 200 basis points together with a 1.25% upfront fee. The resulting all-in cost is lower than any term loan TBIG has placed to date.

Hardi Wijaya Liong, CEO of TBIG, remarked, “We are very pleased that so many credit providers continue to commit to our business because they understand that our long-term, guaranteed contracts from highly rated telecom operators provide excellent coverage over all of our future debt costs.  Our banks treat us as quasi-sovereign credit as evidenced by our pricing which is comparable to Indonesian SOEs. This makes sense given 84% of our revenue is long-term contracted revenue from high-quality telcos ultimately owned by the governments of Indonesia, Malaysia, and Qatar.  Once again, the low pricing of our debt facilities reflects the common sense understanding of the very low credit risk in our business and our lenders continued comfort with our leverage at ~5x net debt to annualized EBITDA.”

Helmy Yusman Santoso, CFO of TBIG added, “In a continuance of our hedging strategy started in 2010, we have already hedged this new facility from foreign exchange risk and our entire debt principal is currently hedged using hedging instruments, with further protection from the USD 40m per year of long-term contracted USD revenue we receive.  The derivative instruments are all life-of-debt hedges, which match the maturity of the debt. We continue to believe our prudent hedging strategy is appropriate and has once again proven to be very effective in protecting TBIG from recent movements in the Indonesian Rupiah.”

The facility has a bullet maturity structure due at 5 years and 8 months from closing.  The facility replaces the existing short-dated 1-year Facility C, which is part of the Unsecured Term and Revolving Credit Facilities signed in November 2014.  This new facility is the longest dated bank loan TBIG has procured and significantly increases the average life of TBIG debt to 4.5 years. Earlier this year, TBIG issued a 7 year, USD 350 million bond at the lowest comparable price ever issued by a non-SOE in Indonesia. That bond offering was also covered multiple times over and resulted in a final coupon of 5.25%. The effects of the two facilities placed this year has substantially lengthened the tenor of the debt structure with no significant principal payments due prior to April 2018.

For more information contact:


Corporate Secretary:

Helmy Yusman Santoso – Tower Bersama Group

Phone: (62-21) 571 1946

Email: corporate.secretary@tower-bersama.com


Investor Relations:

Veronica Jordan

Phone: (62-21) 571 1946

Email: veronica.jordan@tower-bersama.com