EXCL - Repays IDR5 tn worth of loans

EXCL - Repays IDR5 tn worth of loans XL Axiata (EXCL) reported that the company has repaid its debts totaling IDR4.8 tn in December-January 2023. The cash used for debt repayment was from rights issue proceeds that worth IDR4.99 tn. The corporate action was carried out in last December. With early repayment, management expects EXCL to manage to save up around IDR300 bn in cost of finance this year. (Source : Investor Daily) Comment: We expect the debt repayment will bring improvement for EXCL especially for its bottom line and leverage ratio. Amid high interest landscape, we expect, EXCL, which is relatively highly leveraged compared to peers, to be more cautious in issuing debt and loans, to maintain its debt rating. On the other hand, the commencement of 5G coupled with continuous expansion especially in ex-Java could drive capex higher. In overall, we remain optimistic with EXCL performance this year, as we observed all operators have increased their data package price, indicating better competition environment.