TM's exposure to currency fluctuation manageable

KUALA LUMPUR: Telekom Malaysia Bhd (TM) which saw a forex loss of RM14.5 million in the second quarter ended June 30, 2015 due to currency fluctuations, does not see the need to restructure its debt.
"If you look at our exposure, we have total debt of RM6.9 billion and foreign currency debt is about 25% of that. We have done hedging also previously. The one that has not been hedged is only about US$200 million which is due in 2025. We hope things will go back to normal and the ringgit will strengthen by then," its CFO Datuk Bazlan Osman told reporters at a briefing today.
"The US$200 million is about 12% of the total debt so it is quite manageable," he added.
Bazlan said there is no need for any refinancing or restructuring activities, adding that hedging costs is not cheap.
For the six months ended June 30, 2015, TM saw a forex loss of RM55.7 million compared with a forex gain of RM10 million a year ago, due to the weak ringgit.