tate-owned airport operator Angkasa Pura (AP) I is eyeing Rp 3 trillion in proceeds from conventional and Islamic bonds that will be offered publicly in November.
AP I president director Sulistyo Wimbo Hardjito said the company expected to raise Rp 2.5 trillion from the issuance of conventional bonds and another Rp 500 billion from the Islamic bonds, or sukuk.
About 75 percent of the total funds will be used to develop five airports—in Yogyakarta, Semarang, Banjarmasin, Surabaya and Makassar. The remaining 25 percent is set to be used as working capital.
"We will use the proceeds to increase terminal capacity in those airports, build new runways and upgrade our services such as the speed of Wi-Fi," Sulistyo said at a press conference in Jakarta on Monday.
The conventional bonds of Series A, maturing in five years, carry a coupon rate of 7.45 percent per annum, while the seven-year tenor Series B and the 10-year tenor Series C offer coupon rates of 7.95 percent and 8.1 percent, respectively.
The sukuks are also divided into three series. The five-year Series A offer a 8.2 percent yield per annum, while Series B and Series C provide 8.7 percent and 8.85 percent returns, respectively.
The bonds will be offered from Nov. 14-15 and the coupon payment will be made every three months. (ags)
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