JAKARTA (TheInsiderStories) – State-owned oil producer, PT Pertamina re-issued two series Global Medium Term Notes with total amount US$1.5 billion. Series A have tenure 10 years with coupon rate 3.65 percent, while Series B is 30 years with an interest rate of 4.7 percent.
Finance Director Pahala N. Mansury said, the funds use for capital expenditure, which this year worth of $4.5 billion and next year approaching $9 billion. In addition, the issuance of global debt securities is also for debt refinancing.
He revealed, Pertamina has planned to rise upstream production and kick off the Balikpapan refinery in East Kalimantan, which is expected to be executed by the end of 2019.
Mansyuri stated that the incoming orders for the global bond $12 billion or oversubscribed eight times. Deutsche Bank, HSBC, PT Mandiri Sekuritas, and Standard Chartered has helped the deal.
Pertamina has six oil refineries with an installed capacity of 1 million barrels oil per day (BOPD). Now, the energy producer is developing new and renewable energy from various potential sources in Indonesia.
In the first semester of 2019, Indonesia’ oil and gas trade deficit reached $4.78 billion. The mandatory of bio diesel use 20 percent program its expecting to reduce the deficit.
Moody’s Investors Service has assigned a Baa2 rating to the proposed senior unsecured notes to be issued by Pertamina. The rating outlook is stable. The notes will be issued under Pertamina’ $10 billion GMTN program, which is rated (P) Baa2.
Pertamina plans to use the proceeds to finance the tender offer for its outstanding $1 billion 5.25 percent senior notes due 2021 and $1.25 billion 4.875 percent senior notes due 2022. The remaining proceeds will be used for capital expenditures and general corporate purposes.
Moody’s expect Pertamina’ retained cash flow-to-net-debt will weaken to 25 percent over the next two years from 51.2 percent in 2017, but remain within the parameters of its rating.
Pertamina is a 100 percent Indonesian government-owned, fully-integrated oil and gas corporation, with operations in upstream oil, gas and geothermal exploration and production, downstream oil refining, marketing, distribution, transportation and trading of petroleum products.
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