Pertamina may issue global bonds

Ika Krismantari, The Jakarta Post, Jakarta

State oil and gas firm PT Pertamina is considering issuing global bonds this year to refinance loans, a company executive said Tuesday.

Finance director Frederick Siahaan said the company was still burdened with "over-expensive" loans totaling up to US$400 million and was planning to issue global bonds to repay them.

"The bonds will be issued after the completion of an audit to our financial report," Frederick said, while declining to name the value of the bonds to be issued.

Most of the $400 million loans are scheduled to mature within the next three years.

Pertamina plans also to spend up to $400 million to buy eight vessels over the next three to four years.

"So far, we have secured the sales of two of them, both used, each with a capacity of 15,000 tons. The two ships cost around $35 million and will be delivered in the first quarter of this year."

The company, he added, was also in final negotiations to buy two vessels from Chinese companies.

For the remaining four, Frederick said the company planned to open a tender for the procurement of vessels with a capacity of 45,000 tons each.