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AKARTA: Publicly listed construction company PT Adhi Karya is seeking Rp 750 billion (US$80 million) from issuing conventional and Islamic bonds with high coupon rates ranging between 9 and 10.5 percent.

The company is offering Rp 625 billion in conventional bonds, which are divided into two series. The A series, which will account for Rp 375 billion and will mature in five years, will be offered with 9 to 10 percent coupon rates, corporate secretary Kurnadi Gularso said after the company’s public expose on Thursday.

Meanwhile, the B series, which will total Rp 250 billion with a maturity period of seven years, will be offered with 9.5 to 10.5 percent coupon rates.

Adhi Karya will also raise Rp 125 billion from issuing Islamic bonds, or sukuk, which will give 9 to10 percent yields in five years.

Adhi Karya, which is 51 percent owned by the government, is planning to use Rp 375 billion from its conventional-bond issuance to refinance its previous bonds, which were launched in 2007 and will mature on July 6. The remaining Rp 250 billion of conventional bonds will be used to invest in property projects, including the development of hotels, office buildings, mixed-use edifices, real estate and shopping malls in Riau and Greater Jakarta.

The company will offer the debt instruments on June 27-28 and is expecting to list them on the Indonesia Stock Exchange (IDX) on July 4. Adhi Karya has appointed PT Danareksa Sekuritas and PT OSK Nusadana Securities Indonesia as underwriters for the issuances and PT Bank Mega as the trustee.