JAKARTA (TheInsiderStories) - PT Angkasa Pura II (AP II), the operator of international airport Soekarno-Hatta and 12 other airports in western part of Indonesia, issues bonds worth Rp2 trillion, the proceeds of which will be used to fund its airport expansion.
The bonds are comprised of three series – series A with tenor of 5 years, series B with tenor of 7 years and series C with tenor of 10 years. The bonds series carry coupon of 8.5-8.75 percent for series A; 8.75-9 percent for series B; and 9-9.25 percent for series C bonds.
Acting as underwriters for the bonds issue are PT Danareksa Sekuritas and PT Mandiri Sekuritas. The bonds have received rating of idAAA from Pefindo and Fitch Ratings Indonesia.
The company has set offering date on June 27 followed by listing on the Indonesian Stock Exchange on July 1, 2016. Around 92 percent of the proceeds will be used to fund the expansion of the Soekarno-Hatta airport and the remaining 8 percent will be used to fund the expansion of other airports managed by AP II.
The company plans to develop third runway as the current two runways are already too congested. The company needs around Rp4.7 trillion to fund the expansion. The company is construction terminal 3 ultimate and also revitalize the existing terminal 1 and 2. (*)