LINK - Signs IDR3 tn worth of loan agreement

LINK - Signs IDR3 tn worth of loan agreement A subsidiary of XL Axiata (EXCL), Link Net (LINK) has obtained IDR3 tn worth of loans to finance home pass fiber expansion plans and other supporting infrastructures. The loan agreement was signed with Bank BCA (BBCA) which is matured in 5 years. (Source : Bisnis) Comment: As market is anticipating planned transformation of EXCL-LINK to be materialized by year-end, external financing should support its strategic partnership with the former planning to expand fixed broadband and further deploy convergence service. According to transformation road map, EXCL is touted to become serveCO, while LINK will act as FiberCo. That way, LINK is to provide fiber network and infrastructure for EXCL that is targeted to cover 8 mn home passes for the next 5 years, while EXCL will operate fixed broadband service that formerly carried out by LINK. Under existing EXCL-LINK deal, the companies agreed to expand and operate 1 mn new homepasses in one year. As of 1H23, EXCL's convergence penetration has achieved 56%.