Pertamina revives offshore bond issue plan

State oil and gas company PT. Pertamina has decided to revive its plan to raise around US$500 million from the offshore bond market later this year, the company's director said Friday.

Pertamina's finance director, Alfred Rohimone, told reporters that the company will meet with prospective foreign investors during a conference on the Indonesian economy in London May 19-20.

"We will first test the market's response to the plan," he said.

The company's new management shelved the plan when it stepped into power in October. Since then, it has studied the possibility of issuing bonds locally to finance its business expansion.

Rohimone only said that the company has obtained approval for the plan from its board of commissioners.

Pertamina plans to spend $3 billion in the next five years to expand its business, which it will fund through loans and bonds.(*)