TBIG - To raise IDR2.7tn in fund through debt paper

TBIG - To raise IDR2.7tn in fund through debt paper Tower Bersama Infrastruktur (TBIG) is aiming to raise IDR2.7tn in fresh fund through bond issuance, shelf-registered bond IV Tower Bersama Phase III/2024 or part of Shelf-registered bond VI TBIG with total proceed of IDR20tn. The debt paper will be offered with 6.75% of coupon rate for debt refinancing for previous debt paper issued in 2021. (Source: Kontan) Comment: Bond issuance and refinancing are crucial for tower companies given capital intensive nature of business. Despite that, we are of the view that TBIG's leverage ratio remains still healthy in 3Q23 or at least in-line with its industry peers. We are also sanguine with its ability to repay thanks to its strong cash flow as well as its capability to manage finance costs amid high interest rate environment.