EXCL - Plans to issue debt paper, continues expansion to ex-Java

XL Axiata (EXCL) is planning to issue debt paper as a means to repay its maturing loans. The company has previously carried out rights issue that managed to reduce its outstanding debt in 2023 from IDR4.6 tn to IDR2.4 tn that maturing in 3Q23. However, management said that the company will wait-and-see before carrying out this corporate actions. On seperate ocassion, the company also maintained its plan to further expand to Sumatra this year, while for 2023 and 2024, Kalimantan and Sulawesi will be the next expansion target. (Source : Cnbc Indonesia, Kontan) Comment: We appreciate EXCL’s company for ex-Java expansion plans thanks to higher growth, possibly double digit the region provides compared to Java island. With focus re-shifting to ex-Java, we expect EXCL still aims to maintain its share in Java especially due to higher data traffic. Meanwhile, amid challenging market, EXCL is expected to be more prudent in bond paper issuance.