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HomeMaritime NewsRegionsAsiaPelindo I plans $75m bond issue for port development, equipment upgrades

Pelindo I plans $75m bond issue for port development, equipment upgrades

Pelindo I plans $75m bond issue for port development, equipment upgrades
Indonesian state-owned  port operator Pelindo I plans to raise IDR1trn ($74.7m) from a bond issuance next month, in order to fund several port developments and upgrade port equipment, local reports said.

Pelindo I will offer three, five and seven-year bonds with coupon rates at between 8.25% and 10.25%, said president director Bambang Eka Cahyana.

"Bond issuance is a right step to securing funding as it allows for a lower interest cost compared to loan from banks," he said.

Pelindo I said it would use 54% of the funds raised to develop ports among the company's various subsidiaries while 42% will be used to buy equipment for its ports.

Meanwhile the remainder of the funds will be used to improve its hospital and improve its information technology system.

TAGS: Finance & Insurance Ports Regions Indonesia
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