PT KAI Issues IDR 2 Trillion Bonds And Sukuk, Requests From Investors Record Excess Of Up To IDR 4.6 Trillion

JAKARTA - PT Kereta Api Indonesia (Persero) or KAI said that the Phase I 2022 Sustainable Public Offering (PUB) of bonds and Sukuk Ijarah is attractive to investors. In fact, KAI recorded oversubscribed or oversubscribed 2.3 times.

KAI's VP of Public Relations Joni Martinus said the investor's response to KAI's offer was very encouraging.

"This shows the high level of public trust in the performance of KAI, which continues to innovate to get up faster and better during the Covid-19 pandemic and in the future", Joni said in a statement quoted by Antara, Friday, August 12.

Joni said that KAI had conducted a public offering on Tuesday, August 2, for Shelf-Registered Bonds I Phase I/2022 worth IDR 1.5 trillion. Then the Sukuk Ijarah Phase I/2022 worth Rp500 billion. However, KAI noted that the number of requests from investors reached IDR 4.6 trillion.

KAI's bonds and Sukuk are divided into two series, namely series A with a 5-year term with a coupon of 7.1 percent and series B with a 7-year term with a coupon of 8 percent.

Joni further revealed that in Semester I 2022, KAI managed to improve the company's performance so that it could turn losses into profits.

In Semester I 2022, KAI recorded a net profit of IDR 740 billion which grew 254 percent compared to Semester I 2021, which was a net loss of IDR 480 billion.

The bond funds will be used for refinancing bonds I 2017 series A, developing coal transportation for the southern part of Sumatra, and procuring Adi Soemarmo International Airport (BIAS) railway facilities.

KAI diversifies its funding through both bank and non-bank financial institutions.

He added that the bond and Sukuk funds will be used as best as possible to increase rail transportation, especially freight and passenger transportation.

"KAI appreciates the interest of investors who indirectly support sustainable growth so that trains can become the backbone of reliable mass transportation for both passenger and goods transportation for all Indonesian people", concluded Joni.