JAKARTA. PT Dayamitra Telekomunikasi Tbk (MTEL) has paid off some of its debt in advance, worth over IDR 2 trillion, in anticipation of a rise in JIBOR. The funds used to settle the debts came from internal cash.
“This month, we have made payment worth over IDR 2 trillion. We have quite a solid cash flow,” Hendra Purnama, Investment Director and Corporate Secretary of Mitratel, confirmed last week, as quoted by Bisnis. He believed that Mitratel currently has sufficient cash to cover all its obligations that are due.
Purnama said that this debt settlement was intended to cut down expenses and as a measure in case of a JIBOR increase. Its loans, in fact, use JIBOR plus margin. “Therefore, we discussed it with the back to convert the variable rate into a fixed rate,” he added.
On the other hand, this subsidiary of PT Telkom Indonesia (Persero) Tbk) plans to arrange the issuance of rupiah notes or other financial instruments. Until the end of 2021, its total debts reportedly reached IDR 18.07 trillion, shifting 46.2% from the debt recorded in late 2020. (AM/ZH)