Pertamina`s President Director, Karen Agustiawan did not confirm when the bond would be issued but said, "It will certainly be this year, but when exactly would depend on the market conditions."Jakarta (ANTARA News) - Indonesia`s state-owned oil and gas company, Pertamina, is considering issuing a global bond worth US$1.0 to US$1.5 billion to meet its investment needs.
"Yes, we have studied the possibility of issuing a global bond worth US$1.0 to US$1.5 billion," Pertamina`s President Director, Karen Agustiawan, said at the state enterprises ministry here on Wednesday.
She said the proceeds from the bond issuance would be used to finance development in downstream and upstream sectors.
She did not confirm when the bond would be issued but said, "It will certainly be this year, but when exactly would depend on the market conditions."
Karen added that she is still seeking approval from the board of commissioners, including the state enterprises ministry representing Pertamina shareholders.
In the first semester of 2011, Pertamina issued a global bond worth US$1 billion with a coupon of 5.25 per cent and a yield of 5.5 per cent with a 10-year tenure.
The joint lead managers in the bond issuance were Citi Group, Credit Suisse and HSBC.
Pertamina`s Corporate Communication Vice President Mochamad Harun said that bonds are another source of funding apart from banks.
"Bonds, specifically global ones, are our funding instruments," he said.(*)
Editor: Heru Purwanto
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