KAI plans Rp1.1 trillion bond and sukuk offering to repay bridge loans
The Indonesian railway operator has yet to receive regulatory clearance. Its indicative timetable sets the initial offering period for 28 October to 25 November 2026.
Indonesia’s state-owned railway operator PT Kereta Api Indonesia (Persero), or KAI, plans to raise Rp1.1 trillion through bonds and ijarah sukuk to repay bridge loans it intends to take out, according to a prospectus filed with the Indonesia Stock Exchange on 27 October 2026.
The proposed issuance comprises up to Rp800 billion in bonds and up to Rp300 billion in ijarah sukuk. These are the first tranches of programmes targeting Rp4.1 trillion in bonds and Rp1.4 trillion in sukuk, respectively.
KAI said it plans to borrow Rp800 billion and Rp300 billion from creditors that have not yet been selected. Those loans would fund repayment of the principal on its 2019 Series B bonds, which mature on 13 December 2026. Proceeds from the new securities would then repay the bridge financing.
Both offerings would have four series, labelled A to D, with the amount allocated to each still undetermined. The proposed bonds carry fixed interest rates ranging from 6.60 per cent to 7.90 per cent.
The indicative timetable places the initial offering between 28 October and 25 November 2026, with an effective date of 15 December 2026. KAI said the Financial Services Authority, or OJK, had not yet declared the offerings effective.
Management said KAI would draw on internal cash or other external financing if the offering proceeds proved insufficient. Bank Syariah Indonesia has been appointed trustee for the sukuk, while Bank Mega will serve as trustee for the bonds.
