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Bank Bukopin, a midsize lender, has set the coupon on its planned Rp 1 trillion ($113 million) of bond sales at 9.25 to 10.25 percent, its president director said on Wednesday.

The Jakarta-based lender is aiming to raise Rp 1 trillion with a sale of seven-year bonds in March as part of its plan to sell up to Rp 2 trillion in two years. It will offer the notes to investors from March 5 to 6 and has scheduled a listing on the Indonesia Stock Exchange (IDX) for March 12.

CIMB Securities Indonesia, Mandiri Sekuritas and Indo Premier Securities were hired to help arrange the debt sale, said Bank Bukopin’s president director, Glen Glenardi. He added that proceeds of the bonds would be used mainly to boost domestic lending.

“That way we can keep our CAR level at 12 percent this year,” Glen said, referring to the capital adequacy ratio, a measure of the lender’s financial strength.

Yuga Nugraha, a director at CIMB Securities Indonesia, said local investors were expected to buy the bonds but declined to share details about their bids.

Many Indonesian companies are selling bonds to capitalize on low borrowing costs following the country’s recent sovereign debt rating upgrades from ratings agencies Moody’s Investors Service and Fitch Ratings.

The central bank has kept its benchmark interest rate at a record low of 6 percent after it cut the policy rate by a total of 75 basis points in October and November last year. It plans to hold a monetary policy meeting on Thursday and is expected to maintain its rate to spur domestic growth.

Shares of Bank Bukopin rose 1.6 percent to Rp 630 on the IDX on Wednesday and have gained 8.62 percent so far this year.

The midsize lender is 31.97 percent owned by Indonesian cooperatives and 13.1 percent by the Indonesian government.