PT Kereta Api Indonesia (KAI), a state-owned train operator, offered local bonds worth of Rp2 trillion to investors today (11/11). The proceed from bond issuance will be used to pay the company loans and business development. The bond issuance helped by PT Mandiri Sekuritas, PT Bahana Sekuritas, PT BCA Sekuritas, PT BNI Sekuritas, and PT Danareksa Sekuritas. The bonds are divided into two series. Series A has a term of five years with the coupon rate between 7.45– 8.10% per year. And, Series B with a tenure seven years with the coupon rate of 7.8-8.5% per annum.
CEO of KAI, Edi Sukmoro, the operator needs Rp1.2 trillion to pay loan from PT Bank HSBC Indonesia. In addition, the company aimed to buy new trains to replace 672 trains, build power lined for its railroad facitilities, including replacing the engines, freight cars, locomotive construction, diesel rail cars and others to improve the production capacity and services.