JAKARTA (TheInsiderStories) – PT Kereta Api Indonesia (KAI), a state-owned train operator, offered local bonds worth of Rp2 trillion (US$142.85 million) 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 domestic bonds received Triple A rating from PT Pemeringkat Efek Indonesia.
The bonds are divided into two series. Series A has a term of five years with the coupon rate between 7.45 – 8.10 percent per year. And, Series B with a tenure seven years with the coupon rate of 7.8-8.5 percent 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.
KAI expecting will obtain an effective statement from the Financial Services Authority on Dec 5, 2019, and make a public offering on Dec. 6 – 9. Its also targeting listing on the Indonesia Stock Exchange (IDX) on the Dec 13.
In the first half (1H) of 2019, KAI has total assets Rp41.2 trillion, or grow 5.84 percent compared to last year. While revenue grew by 14.31 percent and net profit rose to 54.39 percent.
According to IDX data, beside KAI, there are still 12 companies that will issue local bonds until the end of 2019 with potential funds Rp16.22 trillion. Of the 12 companies that will issue bonds, as many as seven companies are financial services institutions.
Four of the seven financial service institutions are banks, namely PT Bank Rakyat Indonesia Tbk (IDX: BBRI) which will issue bonds of Rp5 trillion, PT Bank Mandiri Taspen with a bond value of Rp1 trillion, PT Bank BTPN Tbk (IDX: BTPN) with a bond value of Rp1 trillion and PT Bank CIMB Niaga Tbk (IDX: BNGA), which will issue bonds worth Rp2 trillion and subordinated bonds with a value of Rp1 trillion.
Then, there are three finance companies that will also issue bonds, namely PT Bussan Auto Finance with a bond value of Rp1.5 trillion. Then, there is PT Indonesia Infrastructure Finance with a bond value of Rp1.5 trillion, and PT Usaha Indonesia Reliance Financing with a value of Rp600 billion.
In addition, there are other companies from various sectors that will issue bonds. PT Voksel Electric Tbm (IDX: VOKS) which will issue Rp500 billion bonds and PT Hartadinata Abadi Tbk (IDX: HRTA) which will issue bonds of Rp600 billion.
Next, there are PT Barito Pacific Tbk (IDX: BRPT) with a bond value of Rp750 billion and PT Jaya Bersama Indo Tbk (IDX: DUCK) with a bond value of Rp375 billion. Finally, there is PT Merdeka Copper Gold Tbk (IDX: MDKA) with a bond value of Rp400 billion.
The IDX noted, the total issuance of bonds and sukuk until 2019 reached 86 emissions from 45 issuers with a value of Rp101.04 trillion. While the total outstanding sukuk and bond emissions listed on the IDX reached Rp442.01 trillion and $47.5 million from 118 issuers.
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