(April 29): Indonesian telecommunications firm PT Solusi Sinergi Digital Tbk is turning to private credit after shelving plans to issue public bonds amid lukewarm investor appetite, people familiar with the matter said.
The company, also known as Surge, is looking to raise US$300 million via senior secured notes, which are expected to be privately placed with a small number of investors, the people said, who asked not to be identified discussing private matters. The proceeds will partially fund the roll-out of its fixed wireless access facility, the people said, adding that the firm will use its existing cash reserves to fund the shortfall.
It may consider issuing public bonds if it receives enough orders during the bookbuilding process for the privately placed notes, one of the people said. Surge didn’t respond to requests for comment.
The proposed deal comes amid a private credit boom in Asia, which still accounts for a small part of the US$1.8 trillion global market. The asset class in the region is projected to grow to US$92 billion in 2027 from US$59 billion in 2024, representing a 16% compound annual growth rate, according to an industry report prepared together with the Alternative Investment Management Association.
Opportunities for private credit include the region’s infrastructure sector, where emerging Asia excluding China, faces an estimated annual financing gap of US$1.7 trillion, according to the report. Data centres and telecom towers, for example, have been identified as high-growth areas for deployment, and new funds have been set up to tap this demand.
On Monday, Allianz Global Investors announced it secured US$270 million in commitments for the first close of its private credit fund targeting infrastructure investment in the Asia Pacific.
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Earlier this year, Surge held a non-deal roadshow in Hong Kong and Singapore, where the firm gauged investor interest in a potential debut dollar bond offering in the public market, they added.
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