Mandiri Sekuritas XL Axiata obtained Rp2.5tn debt (EXCL, Rp5,600, Buy, TP: Rp5,900)

EXCL obtained Rp2.5tn worth of debt from Bank Mandiri that will be used to refinance debt and to finance working capital. The 5 years debt carried interest rate of 1.4% above JIBOR. EXCL will pay its debt from Export Kredit Namden (EKN) worth US$265.2mn. In 1H10 EXCL had repaid its debt worth US$219mn and Rp900bn using its internal cash. EXCL has debt amounting to Rp11.4tn at end Jun10.