MUFG backs Pertamina with $1.5b loan facility

By Romel S. Gurky

MUFG Bank Ltd.'s Jakarta branch and state oil, gas company PT Pertamina (Persero) have signed a US$1.5 billion committed short term loan facility that includes an additional US$1 billion accordion feature.

MUFG is acting as mandated lead arranger, underwriter and bookrunner for the financing, which will be used by Pertamina for general corporate purposes.

The Japanese bank said in a release last week that  the transaction reflects confidence in Pertamina's credit profile and reinforces the strategic relationship between the two institutions.

MUFG said it plans to expand cooperation with Pertamina in transaction banking, global markets and liquidity management. Areas of focus include foreign exchange and hedging solutions, cash management services and other strategic financial initiatives aligned with Pertamina's business requirements.

MUFG has operated in Indonesia for more than 50 years and said it has supported financing for national strategic projects, including power generation, energy and public transportation.  

Editing by Alexander Ginting