JAKARTA (TheInsiderStories) – PT Angkasa Pura II (AP II), Indonesian airport operator, offered two series Rupiah bond as much as Rp750 billion (US$50.68 million), said the company today (08/11). The funds from these bonds will be used for business development.
Based on the company’s statement, the bonds are divided into Series A with term of three years and indicative coupon rate 8.50 to 9 percent per year. Then, Series B has a period of five years with indicative coupon rate of 8.75 to 9.25 percent per annum.
AP II is optimistic it will obtain an effective statement from the Financial Services Authority on Nov. 30, 2018 and conduct a public offering on Dec. 3 and 4. Then, the allotment date is estimated on Dec. 5 and listing at the Indonesia Stock Exchange on Dec. 10, 2018.
The proceeds from the bond offer will be used for the construction and development of runways, taxiways, aprons and other supporting facilities. In addition, it is also used for the construction and development of terminal buildings, parking buildings, accessibility, and other supporting facilities for managed airports.
President Director of AP II Muhammad Awaluddin said, until the end of this year, the company needs Rp 8 trillion of funds for capital expenditure and to develope runways and terminals in four airports. The four airports are Tjilik Riwut Airport in Palangkaraya (West Kalimantan), Tanjung Karang Airport (Lampung), Tanjung Pandan Airport (Bangka Belitung), and Fatmawati Soekarno Airport (Bengkulu).
In addition, the operator also plans to manage Clark International Airport in Manila, Philippines. According to the Finance Director AP II Andra Y. Agussalam, the Philippines opened the way for investors to manage and develop the Clark International airport, a former air base war with the United States.
In the first semester (1H) of 2018, the state-owned operator posted a business income of Rp 4.5 trillion, up 19.33 percent from Rp 3.77 trillion in the 1H of 2017. While the company’s profit in the 1H of 2018 reached 1.32 trillion, an increase of 7.6 percent from the same period the previous year which reached Rp 1.23 trillion.