Airport Operator Plans $157m Bond Sale


FEBRUARY 10, 2015

Jakarta. State airport operator Angkasa Pura II, better known as AP II, hopes to raise as much as Rp 2 trillion ($157 million) from the sale of bonds this year to revamp the Soekarno-Hatta International Airport.

“We plan to issue five-year and seven-year bonds to raise at least Rp 2 trillion, most likely between September and October,” newly appointed AP II president director Budi Karya Sumadi told reporters in Jakarta on Tuesday.

The company has not yet appointed an underwriter, but Budi noted that it plans to do so within the next two months.

Much of the proceeds from the bond sale will go towards the “Terminal 3 Ultimate” project, the expansion plan for Soekarno-Hatta International Airport’s Terminal 3, Budi said.

The new terminal would boost capacity at Indonesia’s main airport to 61 million travelers per year.

Soekarno-Hatta is the country’s busiest airport, handling 62 million passengers per year — almost three times its original design capacity.

Construction of the project, estimated to cost around Rp 4 trillion, is currently in progress. The new terminal is scheduled to start operations between March and April this year.

Budi noted that spending on the new terminal is a part of AP II’s larger plan to spend up to Rp 5 trillion on maintenance and development of its airports in the next two years.

In addition to the Rp 2 trillion bond sale, AP II plans to finance its spending with a combination of internal cash and bank loans, Budi said.

AP II manages 13 airports in Indonesia, including Sultan Syarif Kasim II airport in Pekanbaru, Riau, and Husein Sastranegara airport in Bandung, West Java.

Its two-year plan also includes a project to revitalize the two existing terminals at Soekarno-Hatta, estimated to cost roughly Rp 2.7 trillion, Budi said.

He added that the operator would start renovating Terminal 1 this year, starting from basic maintenance issues such as lighting and customer service.

“We hope to start the physical revamp as soon as the expansion of Terminal 3 is complete,” Budi said.