XL Axiata drives a bargain in US$460mn tower deal with STP

Analysts disagree about pressure on lease rates in Indonesia

Read this article to learn:

  • The terms of the XL Axiata-STP deal, and why it made sense for both parties
  • TowerXchange’s estimated breakdown of tower ownership in Indonesia
  • As independent towerco markets mature, how do lease prices evolve?
  • Will the XL-STP deal create pressure on lease prices in Indonesia?
  • STP’s innovations in micro-poles, fibre and DAS for 4G

XL Axiata has announced the sale of 3,500 towers to PT SOLUSI TUNAS PRATAMA (STP) for US$460mn, with an initial term of ten years, realising a healthy return of US$131.4k per tower. Reports suggest XL’s all-in, fixed price leaseback rate is just IDR10mn per month (a little over US$800), significantly below the market lease rates…

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