MAINBOARD-LISTED telco Singtel : Z74 +1.22%announced Monday (Apr 3) that a unit of wholly-owned subsidiary Singtel Optus has priced a A$100 million (S$90 million) five-year fixed rate sustainability-linked bond (SLB) at 4.577 per cent per annum.

 

Optus Finance, a wholly-owned subsidiary of Singtel Optus, will issue the Australian dollar-denominated SLB on Apr 12. The notes will mature on Apr 12, 2028.

 

Guaranteed by Optus and certain subsidiaries, the SLB will be drawn down under Optus Finance&rsquo s A$3 billion Australian Debt Issuance Programme.

 

If the stated greenhouse gas emissions target is not met, the coupon rate of the SLB will be subject to a step-up margin of 0.25 per cent per annum from the interest period commencing Oct 12, 2025.

 

Singtel said in a bourse filing that Optus will use the net proceeds from this issue to fund its ordinary course of business.

 

BNP Paribas acted as sole lead manager and bookrunner for the issuance.

 

SINGTEL : Z74 +0.41% is in talks to integrate its Indonesian partner Telkom&rsquo s fixed broadband business into the Singapore firm&rsquo s regional associate Telkomsel.

 

The news comes in response to a media query, said the telecommunications giant on Thursday (Mar 30).

 

It believes the potential integration represents a &ldquo rare opportunity for Telkomsel to enter Indonesia&rsquo s high-growth fixed broadband market with an industry leader (Telkom) that has some 70 per cent share of (the) market&rdquo .

 

The group also highlighted Telkom as its long-time partner of nearly three decades.

 

It, however, emphasised that negotiations are still ongoing, and there is no certainty of a transaction.

 

&ldquo Around the world, post-pandemic demand for high-quality fixed broadband has jumped and this is all the more apparent in an emerging market like Indonesia,&rdquo said Singtel.

 

&ldquo Singtel will support this integration if the terms make sense for Telkomsel and our shareholders, and achieve a win-win transaction with our partner Telkom.&rdquo

 

The group in 2022 signed a memorandum of understanding to jointly explore the integration of Telkomsel&rsquo s mobile business with Telkom&rsquo s fixed broadband business.

 

Telkom is also among the telcos in Indonesia that have started to introduce fixed and mobile broadband bundles amid growing demand for video streaming. Analysts say such products could bring about reduced customer churn and higher margins as take-up rates improve.