JAKARTA: CDMA-based operator PT Bakrie Telecom Tbk (BTEL) has appointed Credit Suisse as the sole global coordinator of the global bond issuance.Credit Suisse and Morgan Stanley will become the joint bookrunners of the corporate action.In information disclosure submitted to Indonesia Stock Exchange (IDX) yesterday, the management of the company said that the agreement with Credit Suisse and Morgan Stanley have not yet signed.Remembering a binding agreement which have not yet signed when this announcement published, then the bond issuance may or may not be happened," he said in the information disclosure to IDX.The company will give further announcement after the signing of the agreement.Previously, Bakrie Telecom is now reviewing the bond issuance plan of US$200 million. If the bond price is profitable by the company then the figure will be raised.President Director of Bakrie Telecom Anindya Novyan Bakrie said the proceeds of the bond issuance will be used to fulfill the capital expenditureThe company also plans to use the proceeds for refinancing, if the set price is profitable. Bakrie Telecom will improve the structure of the debt with the proceeds.The CDMA operator booked an increase of net profit as high as 52.66% to IDR148.59 billion as of September 2010 compared with IDR97.33 billion in the same period of 2009, although operating profit of the company fell 11.54%.Meanwhile, PT Fitch Ratings Indonesia assigned a B rating for US dollar-denominated bonds worth US$130 million which will be issued by Bakrie Telecom.Fitch said yesterday the rating was presented in connection with the companys plan to issue bonds which will mature in May 2015.The bond will be issued through a subsidiary of the Bakrie Group's which engaged in telecommunication sector namely Bakrie Telecom Pte Ltd, with a full guarantee from the parent company."The bond issuance are part of the publishing program of Bakrie Telecom Pte Ltd, worth of US$250 million in May last year," said analyst at Fitch Nitin Soni in the press release.Bakrie Telecom's corporate rating at B level was mainly backed by the company's ability to grow operating cash flow, which is in line with the expectations of Fitch on the companys EBITDA margin.An analyst at PT Eco Capital Securities Cece Ridwan saw Bakrie Telecoms global bond issuance plan is quite reasonable, especially when there are pressures on national market.(wiw/t03)

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