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AKARTA: State-run construction firm Waskita Karya is gearing up to issue a continuous bond worth Rp 2 trillion (US$169.62 million), to be used for the company'€™s working capital and to expand its non-construction business line.

Waskita corporate secretary Haris Gunawan told kontan.co.id on Friday that the company was currently preparing a prospectus to notify its shareholders about the bond, the first phase of which is expected to be issued next month.

'€œWe will issue Rp 1 trillion first for the initial issuance,'€ he explained.

Haris also said that the bond would have its coupon set at 8 to 9 percent per year. Bahana Sekuritas, Danareksa Sekuritas and Mandiri Sekuritas have been appointed as underwriters for the issuance.

Proceeds from the bond issuance would be used as the company'€™s working capital and to support the company'€™s precast concrete and energy businesses, he added.

As of the first half of this year, Waskita'€™s liabilities stood at Rp 6.79 trillion, while its equity was Rp 2.35 trillion.

During the first six months of the year, Waskita amassed net profits of Rp 60.7 billion, a 7.6 percent increase from the Rp 56.4 billion earned in the same period last year.

The company also gained Rp 3.1 trillion in revenue during the period, compared with the Rp 3 trillion it generated last year. Construction dominated the company'€™s first-half revenue, contributing 94.95 percent to the total figure.