PT Citra Marga Nusaphala Persada Tbk (CMNP) has won a contract to construct a 100km long coal hauling road with an estimated cost of Rp7trillion ($763m) in South Sumatra, Indonesia.

CMNP operational director Hudaya Arryanto was quoted by The Jakarta Post as saying the construction of the road, spanning from Lahat to Palembang, will support the growing coal mining industry, which lacks proper infrastructure.

"The coal deposits are huge. However, distribution remains restricted by difficult terrain," Arryanto added.

"We hope to start construction in the second half of the year or in the first half of next year at the latest."

CMNP finance director Indrawan Soemantri said the company is considering issuing bonds worth a total of Rp1.2 trillion ($130.8m), which include Rp700bn ($76.3m) in conventional bonds and Rp500bn ($54.5m) in Islamic bonds (sukuks), with a maturity period of five years.

"The funds from bond offerings will be used to finance toll road infrastructure projects as CMNP looks to acquire one to two toll roads," Soemantri added.

"We hope to issue bonds in the first half of the year."

The company has appointed PT Indo Premier Securities, PT Sucorinvest Central Gani, PT Ciptadana Securities and PT Equator Securities as the underwriters for the bond offering. In 2011 CMNP got the approval from its shareholders to off-load 200m new shares and make about Rp240bn ($26.16m). They can offer shares within the next two years.

According to executives, CMNP is planning to offer the rights shares after the bond issuance.