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KAI will issue bonds to obtain funds for refinancing

11 November 2019 14:09

JAKARTA. PT Kereta Api Indonesia (Persero) will issue bonds with a total value of Rp 2 trillion. Funds from the issuance of these bonds will be used for refinancing, purchase of new trains and train rejuvenation. 

Didiek Hartantyo, Finance Director of KAI, detailed that Rp 1.2 trillion of the funds obtained from the issuance of the bonds would be used to repay some of the company's debt to PT Bank HSBC Indonesia, while the remaining Rp 800 billion to purchase new trains and renovate existing facilities.

"Until 2016, KAI's funding source was from banks. We see that there are alternative long-term financing options, so we choose bonds," said Didiek Hartantyo in Jakarta on Monday (11/11/2019).

Until October 2019, there are 672 trains aged over 30 years old, which will be repowered. The goal is to increase production capacity and improve services.

This bond received an "idAAA" rating from PT Pemeringkat Efek Indonesia (Pefindo). These bonds are divided into 2 series, namely Series A (5 year-tenor) and a coupon rate of 7.45% - 8.10% per year. then Series B (7-year tenor) and a coupon rate of 7.80% - 8.50% per year.

In November 2017, KAI issued bonds with a total value of Rp 2 trillion. The funds were used to fund the Soekarno-Hatta Airport Railway project and for the procurement of freight trains. (AM/AR)

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