JAKARTA (TheInsiderStories) – Diversified state energy company PT Pertamina on Thursday (02/08) secured a syndicated loan worth US$600 million from eight international banks. PT Bank Mandiri Tbk (IDX: BMRI) and Japan’s Mitsubishi UFJ Financial Group (MUFG) acted as co-mandated lead arrangers.
Bank Mandiri alone is to secure the lion’s share of $100 million of the syndicated loan. The loan syndication was signed in Hong Kong on Thursday, the bank announced.
The loan facility will be used to support Pertamina’s overseas business unit, Maurel & Prom, which was acquired by the company early last year, repaying a Revolving Credit Facility and a shareholder loan, as well as financing the redemption of outstanding Maurel & Prom’s ORNANE 2019 and ORNANE 2021 convertible bonds, held by PT Pertamina International EP (PIEP).
Maurel & Prom is a French oil company specializing in the production of hydrocarbons. It is listed on Euronext Paris and its office is registered in Paris.
The Group generates most of its business in Africa through the exploitation of onshore production assets (in Gabon and Tanzania) and holds a significant stake in SEPLAT, one of Nigeria’s leading indigenous operators.
On Feb 1, 2017, Pertamina became the controlling shareholder of the company, after successfully securing a 72.5 per cent stake.
Maurel & Prom has been on Pertamina’s radar since 2013, when plans to sell the Company first surfaced. In August 2016, the Indonesians made their first move, acquiring a 24.5 per cent stake and later on raising their stake in the company.
The financing is also expected to help strengthen the financial structure of PIEP and support the company’s oil and gas block development in Africa and South America.
Bank Mandiri Director Royke Tumilaar said the loan to Pertamina confirms synergy between state-owned companies. The loan is also seen as a wind of change in terms of a domestic bank’s exposure to the national oil & gas industry.
Over the past few years, the banking industry has been averse to providing loans to the oil & gas sector, following the plunge of crude oil prices. Meanwhile, the oil price has bounced back to over US$60 per barrel at present.
The Maurel & Prom said on Feb. 12, 2018, it will redeem all outstanding 2019 ORNANE and 2021 ORNANE convertible bonds, for which the conversion right has not been exercised by the holders. The number of outstanding 2019 ORNANE and 2021 ORNANE convertible bonds represent less than 10 per cent and 15 per cent, respectively.
Maurel & Prom informs the holders of 2019 ORNANE and 2021 ORNANE that it has opted for payment in cash to those holders who intend to exercise their conversion right within the time limit provided for by the 2019 ORNANE and 2021 ORNANE terms and conditions.
2019 ORNANE and the 2021 ORNANE for which the conversion right has not been exercised will be redeemed in cash at par plus accrued interest from the most recent interest payment date (i.e. €17.2923 per 2019 ORNANE and €11.0549 per 2021 ORNANE).