Telcos having a rough time in capital markets

Regional telecom companies, like their Western counterparts, haven''t fared too well in the capital markets of late.

Telecom companies still need a lot more capital, be it to secure 3G licenses in auctions or build out and upgrade their networks and services. The problem is investors are no longer so keen on telecom shares or bonds, particularly the riskier ones, and banking regulators are getting concerned about the high level of certain banks loan exposures to the sector.

Investors are more selective in terms of what they want to buy. People dont just buy the telecoms sector any more, they buy companies with strong performances, says ABN Amro analyst Joe Locke.

For Asia, this was borne out last week in fund-raisings by Asia Global Crossing and, to...

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