Bakrie telecom seeking US$150 million loan

Jakarta (Antara News) - Bakrie Telecom is seeking a US$150 million loan of which $100 million would be used to expand and enhance the networks of its Esia and Wifone services, two of the CDMA (Code Division Multiple Access) technolgy-based company`s prominent products, a spokesperson said.

The remaining $50 million would be used for debt refinancing, Bakrie Telecom director Rakhmat Junaidi said here Friday.

"The company will probably obtain a syndicated loan from overseas financial institutions with a repayment period of five years," he said.

A financial performance report issued in the third quarter of 2006 stated Bakrie Telecom`s total assets were recorded at Rp2.2 trillion and total equity at Rp1.5 trillion.

According to the report, Bakrie Telecom had 349 base transceiver stations (BTS) in Jakarta, West Java and Banten provinces.

The decision to extend its service network and improve network quality was aimed at increasing service quality and number of subscribers, Rakhmat said.

The report said Bakrie Telecom had 1.3 million subscribers but the figure was expected to rise to 1.5 million late this year. (*)
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