Indonesia: XL Axiata mulls $500m fundraising to strengthen balance sheet

XL Axiata website

Malaysia-based telecommunications giant Axiata Group Bhd’s Indonesian unit PT XL Axiata is looking to raise up to $500 million next year, according to sources Bloomberg cited.

XL Axiata, the most indebted of Indonesia’s listed wireless carriers, is weighing several fundraising options including selling stock to existing investors through a rights offering, the news wires reported, according to people in the know.

The company could sell shares in the first half of next year depending on market conditions, the people said.

XL Axiata said earlier this year it’s seeking to strengthen its balance sheet and focus on more profitable subscribers.

A spokesperson for XL Axiata, Turina Farouk said in a text message the company is “still open for any options to raising funds.”

The company’s net debt has more than doubled in three years to 25.7 trillion rupiah ($1.8 billion) at the end of September, from 12.5 trillion rupiah the same time in 2012, according to data compiled by Bloomberg.

XL Axiata has accumulated total debt equal to 216 per cent of its total equity at the end of the latest quarter, the highest ratio among Indonesia’s eight listed wireless carriers, Bloomberg pointed out from its data.

The telecommunications unit said in October that it eliminated all of its unhedged US dollar borrowings, repaying part of the $580 million of unhedged debt early and converting the rest to rupiah borrowings.

When the company bought Saudi Telecom Co’s Indonesian unit in 2013 to increase its service coverage, it had also assumed $865 million of the carrier’s debt, after paying a nominal fee to acquire the business .

It sold 3,500 telecommunication towers last year to PT Solusi Tunas Pratama for 5.6 trillion rupiah.

Also Read:

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Malaysia: Axiata issuing $500m multi-currency Islamic bond

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.