ISAT - To repay maturing bonds

ISAT - To repay maturing bonds Indosat Ooredoo Hutchison (ISAT) is planning to make repayment for maturing bonds, shelf-registered bonds I phase IV/2016 Series D that worth IDR115 bn on September 2. The debt paper offered a fixed rate of 9% annually. (Source : Bisnis Indonesia) Comment : With its strong cash position (currently at c. IDR5 tn as of June '23) ISAT will not be relied on external funds to pay this maturing debt paper. However, as ISAT is planning to spend IDR13 tn in capex in 2023, the company might consider other venue of external financing in the near future, including utilizing pipeline from shelf-registered bonds IV that was initiated in 4Q22. We retain our BUY call with higher target price of IDR10,075, reflecting 4.1 ‘23F EV/EBITDA