Pertamina mulls issuing US dollar bonds worth US$1-1.5 billion

State oil and gas company PT Pertamina is mulling over a plan to issue US dollar denominated bonds worth US$1-1.5 billion to fund its investment activities this year.

?We are conducting assessment to issue global bonds worth US$1.-1.5 billion,? Pertamina President Director, Karen Agustiawan, was quoted by state news agency Antara as saying.

She said the proceeds of the global bonds will be used to finance the company?s investments in upstream projects, including exploration and exploitation programs, as well as downstream projects.

She noted that Pertamina is yet to determine the timetable when the global bonds will be issued. ?What certain is the global bonds will be issued this year. The timing will depend on market condition,? she said.

The last time the company issued global bonds was in the first semester 2011, worth US$1 billion with coupon rate of 5.24 percent per annum and tenor of 10 years. The bonds launch then was a huge success as demands from global financial institutions by far exceeded the total value of the bonds sale. Acting as joint lead arrangers were Citi Group, Credit Suisse and HSBC.

Editing by Roffie Kurniawan