State-owned railway operator Kereta Api Indonesia (KAI) plans to raise $148 million from its first corporate bond issue for funding its railway projects. Of the total proceeds, 55 per cent will be used for the construction of a 36.4 km railway line connecting the Soekarno-Hatta International Airport in Cengkareng, West Jakarta, and Manggarai, South Jakarta, while the remaining 45 per cent will be allocated for train procurement. The issue will comprise two series of bonds. Bonds in Series A will have a coupon rate ranging from 7.25 to 8 per cent per year and have a maturity period of five years. Debt papers in Series B will offer a seven-year tenor and an annual coupon rate between 7.5 and 8.35 per cent.
