JAKARTA - PT Tower Bersama Infrastructure Tbk (TBIG) hedged a consortium of bank loans worth Rp 5.34 trillion or equivalent to US$ 375 million to reduce financial pressure in the event of an increase in interest rates from creditors. The value of this loan reaches 137.74% of the company's total equity of Rp 3.87 trillion as of March 31, 2019.
As quoted from the disclosure of company information, this loan facility was received by the company and a number of subsidiaries on June 28, 2019. A number of such subsidiaries include, PT Triaka Bersama, PT Metric Solutions Integration, PT Telenet Internusa, PT United Towerindo, PT Tower Bersama, and others.
The consortium of lenders namely Australia and New Zealand Banking Group Limited, CIMB Bank Berhad, Singapore Branch, Credit Agricole Corporated and Investment Bank, DBS Bank Ltd, Mizuho Bank Ltd, Oversea-Chinese Banking Corporation Limited, PT Bank BNP Paribas Indonesia, PT Bank CIMB Niaga Tbk, PT Bank DBS Indonesia, PT Bank HSBC Indonesia, PT Bank OCBC NISP Tbk, HSBC, Singapore Branch, and United Overseas Bank Limited.
Hedging is applied to cross currency swaps (CCS), call spread swaps (CSS), and natural hedges and is carried out at least 75% of the total loan facility. In addition, the implementation of hedging by a subsidiary must obtain the approval of TIBG directors and banks on the three items above and identify non-derivative hedge instruments. (LK)