Pertamina Release 1 Billion Global Bond U.S. Dollar

PT Pertamina (Persero) inaugural international issue bonds worth 1 billion U.S. dollars. Global Settlement bond inaugural Pertamina done on Monday (23/05/2011) night. At the time of its bid, the total demand of investors reached 7 billion U.S. dollars, or seven times oversubscribed.

According to the Vice President of Corporate Communications PT Pertamina Mochamad Aaron, on Tuesday (5/24/2011) in a press release, in Jakarta, this shows the high confidence of international investors to Pertamina, the national oil and gas company of Indonesia, and is the market a positive signal to the investment climate in Indonesia.

Global bonds are issued by Pertamina 5.25 percent coupon, the yield (yield) of 5.5 percent and the tenor of 10 years. Pricing has been done in New York on Monday, May 16, 2011. Joint lead managers (JLM) in global bond issuance is Citi Group, Credit Suisse and HSBC. Global bond Pertamina will be listed on the Singapore Stock Exchange (SGX).

Pertamina global bond rated BB + with positive outlook from rating agencies Fitch Ratings and Moody 's, and Ba1 with a stable outlook from Standard & Poor's, or equivalent debt ratings of Indonesia (Indonesian sovereign rating).

Very positive response was not only given by the United States market, but also provided by Asian and European markets. This is reflected in the roadshows that have been held Pertamina 11 May 16, 2011 in Singapore, Hong Kong, London, and the United States (LA, Boston, New York).

Some of the things that determine success in global bond issuance, among other fundamental prime good Pertamina, Indonesia's macroeconomic condition is good, the timing (timing) the issuance of the right, and supported by global market conditions are conducive, and the amount of interest (appetite) investors on bond investment in developing countries (emerging markets / EM).

Global bond will be used for capital expenditures as part of Pertamina and the company's efforts to realize its aggressive strategy of 2011 upstream and profitable downstream. For 2011, the General Meeting of Shareholders of the company Pertamina set a capital expenditure amounting to Rp 37.1 trillion. Approximately 76.4 percent or Rp 28.4 trillion of that amount will be spent on upstream sector, while another 23.6 percent in the downstream sector.

With a yield of 5.5 percent, higher global bond Pertamina 60 bps (basis points) against the Government of Indonesia Indon global bond 21. This is a good achievement compared to some national oil companies like Petrobras of different 85 bps with the Government of Brazil, Pemex (Mexico oil company) with the Government of Mexico differ by 70 bps, and Gazprom is a global 75-85bps over the Russian government bonds.

source: kompas.com