Pertamina signs $565m loan agreement

State-owned oil and gas firm PT Pertamina has signed a US$565 million in corporate loan agreement with four banks to finance its upstream and downstream activities.

The loan agreement was signed with the four banks including PT Bank Mandiri (Persero) Tbk., PT Bank Negara Indonesia (Persero), PT Bank Central Asia Tbk., and PT Bank Rakyat Indonesia (Persero) Tbk, Pertamina?s finance director M. Afdal Bahaudin said.

?This corporate loan will help Pertamina to invest in the future, including for general expenses, and working capital to finance the projects of Pertamina and Pertamina?s subsidiaries to help achieve the company?s vision to become a world class oil and gas firm,? he said.

In Feb, Pertamina plans to launch its first US dollar-denominated Global Bonds to rise between US$1 billion and $1.5 billion to partly finance the company?s expansion program.

The Global Bonds would be used to partly finance new investments which are expected to increase to Rp 46.6 trillion (1 US $ = Rp 9,050) this year from Rp 37 trillion in 2009.

The investment this year include around Rp 29.5 trillion for oil/gas upstream activities, Rp 14.6 trillion for oil/gas downstream activities and Rp 2.5 trillion for geothermal activities. (bernard)