Pertamina is not delaying bond issue but reviewing it, says director
Monday, October 13 2003 - 02:35 AM WIB
“It takes time. Now that Pertamina has become a limited liability company, it must be very careful (in taking financial decisions),” Pertamina's finance director Alfred H. Rohimone told Petromindo.com on Monday when the website sought comments through telephone on the bond issue.
He added that he was surprised after reading the news.
The well-respected Bisnis Indonesia newspaper reported on Monday in a front page headline story that the US$90 million and Rp 225 billion Peteka I (PT Pertamina Tongkang I) bond issue plan may be canceled as rumors say the new management of the Pertamina didn’t approve of the bond plan.
“Being an investment company, we have ordered Peteka I bond during the book building process but we have yet to receive any confirmation from the issue’s underwriter. This unclear situation indicates that the bond issue may be canceled," one source at a pension fund told the paper.
Pertamina held the public expo on Peteka I on September 18 and went ahead with the book building process, which was scheduled to be completed by the beginning of the last week.
Generally, investors will get confirmation about their orders after the end of the book-building process.
But, Pertamina’s public relations officer M. Harun told the paper that the process of the Peteka I bond issue was still in progress.
“So far, Pertamina has decided to review only its $500 million bond (euro bond),” Harun said.
Investors are worried that the new management may cancel all the old management’s plans including Peteka I bond issue, the daily reported.
Earlier, Alfred said Pertamina’s determination to focus on its core businesses like acquiring new oil and gas fields had prompted it to review the bond issue plan. (godang)