TOWR - Subsidiary to issue bonds

A subsidiary of Sarana Menara Nusantara (TOWR), Protelindo is gearing up for raising targeted IDR1.09 tn through bond issuance, which is part of shelf registered bonds phase III totaling IDR5 tn. Meanwhile, the offering period will be on May 31 to 5 June ‘23. (Source : Kontan) Comment: Bond issuance is always part of business as usual of tower companies due to the business nature. For TOWR specifically, it needs to shift its financing strategies as it saw its bottom line hit due to high finance cost. TOWR intends to expand its bond portion that offers stability and visibility compared to bank loans which generally use floating rate. IDR bonds are deemed more ideal amid FFR hikes.