TEMPO.CO, Jakarta - State-owned railway company PT Kereta Api Indonesia (KAI) has issued Rp2 trillion bonds today, October 19.

KAI Finance Director Didiek Hartantyo said that the company will use the money raised from the bond issue to finance the completion of Soekarno-Hatta Airport rail project and train procurement. “As many as 55 percent (Rp1.1 trillion) will go to Soekarno-Hatta Airport rail [project], 45 percent to train procurement,” he said today, Oct. 19, in Jakarta.

Didiek said that PT KAI bonds are divided into two series, Series A bonds with maturities of five years and bond coupon rates of 7.25-8 percent, and Series B bonds with maturities of seven years and bond coupon rates of 7.5-8.35 percent. Bond interest will be paid in quarter 30/360 in accordance with the respective interest payment dates.

Didiek is confident that the KAI’s public offering of bonds will be a success. He said that the KAI bonds are AAA rated by the rating agency PT Pemeringkat Efek Indonesia. “In terms of assets as well as income and profit, they are all attractive,” he said.

KAI expected the effective statement from the Financial Services Authority to be issued on November 13. The company is planning to hold an initial public offering on November 14 and 16. Allotment will be carried out on November 17 and process will be concluded with a stock-market listing on the Indonesia Stock Exchange (IDX) on November 22.

M ROSSENO AJI