tate-owned railway operator PT Kereta Api Indonesia (KAI) listed bonds worth Rp 2 trillion (US$148.02 million) on the Jakarta Stock Exchange (IDX) on Wednesday.
KAI finance director Didiek Hartantyo said during the book building process, the Bond had been oversubscribed by Rp 5.2 trillion, indicating strong demand for the bonds among investors.
He explained Bond Series A have a 5-year tenor with 7.75 percent coupon rates per year, while Bond Series B have a 7-year tenor with 8.25 percent coupon rates per year.
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Didiek said the bond issuance was needed to strengthen the companies capital structure amid numerous large scale programs assigned by the government.
“Amid the numerous high scale programs, we need large amounts of capital to finance the projects,” said Didiek as reported by kompas.com.
He explained that 55 percent of the turnover from the bond sales would be used to complete an airport project connecting Soekarno-Hatta International Airport to the inner city of Jakarta, while 45 percent would be used to procure rolling stock.
PT Pemeringkat Efek Indonesia rates KAI Bond I AAA or Triple A.
In the bond issuance, KAI appointed joint lead underwriters, including PT Mandiri Sekuritas, PT BNI Sekuritas, PT Danareksa Sekuritas, PT Bahana Sekuritas and PT BCA Sekuritas. (bbn)
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