JAKARTA - PT Bali Towerindo Sentra Tbk (BALI) will offer its Shelf-Registration Sukuk Ijarah I Phase II 2023 worth IDR 425 billion on October 4-5, 2023. The proceeds of this sukuk issuance will be used to pay off obligations and improve its optic cable network in several cities in Indonesia.

Based on the prospectus quoted Thursday (21/9), sukuk ijarah is said to be issued without draft and is offered for 100% of the remaining ijarah yield of IDR 32.51 billion per annum. It is calculated from the total ijarah yield of IDR 76.5 million per IDR 1 billion per annum minus the remaining ijarah yield with a 370-days tenor.

Then, 7.49% of the proceeds of this sukuk ijarah issuance will be allocated for refinancing, while another 36.76% is set aside for capital expenditure, leaving the remainder for working capital.

Furthermore, 50% of the capital expenditure is meant for the expansion of fibre-to-the-x network to corporate, retail, and government segments. Another half is then reserved for investment or upgrade of microcell pole (MCP) telecommunication tower, as well as fibre optic network that connects telecommunication towers of BALI across Greater Jakarta Area, Java Island, and Bali.

This upcoming sukuk ijarah is granted an “A- (idn) (sy)” rating from PT Fitch Ratings Indonesia (Fitch). The assigned underwriters for this sukuk ijarah are PT BRI Danareksa Sekuritas and PT Sucor Sekuritas, while the appointed trustee is PT BPD Jawa Barat dan Banten Tbk (BJBR). (LK/ZH)