Jakarta (ANTARA News) - State railway company PT Kereta Api Indonesia (KAI) plans to issue rupiah-denominated bonds worth Rp2 trillion to finance its projects.

"Nearly 55 percent of the bond issue will be used to complete the construction of Soekarno-Hatta railway line, and 45 percent will be used to procure trains," PT KAI Finance Director Didiek Hartantyo said here on Thursday.

The bonds consist of series A and series B. The five-year series A bonds will be issued at a coupon of 7.25-8 percent, and the seven-year series B bonds will be issued at a coupon of 7.50-8.35 percent, he remarked.

He expressed optimism that the bonds will attract the market, thanks to the companys good experience and track record, strong cash flow, and good financial management profile.

Credit rating agency PT Pemeringkat Efek Indonesia (Pefindo) has assigned its AAA (triple A) rating for the bonds, thanks to the companys financial condition, he explained.

PT KAI has set itself the target of operating the Soekarno-Hatta railway line, which was built under Presidential Regulation No. 83/2011, by early next year.

"We have targeted to earn Rp122 billion from the operation of the Soekarno-Hatta line in 2018, and the figure is expected to increase to Rp557 billion in the following year," he added.

PT KAI also plans to rejuvenate its facilities with the aim of improving its services to passengers and increasing the number of passengers.

The bonds are expected to be offered to the public from Nov 14 to 16, with the allotment date scheduled for Nov 17.

(S012/INE)
Reported by Zubi Mahrofi
EDITED BY INE/A014
(T.S012/B/KR-BSR/A014)

Editor: Aditia Maruli Radja
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