Pertamina to issue $500 million bonds

State oil and gas company PT Pertamina is planning to issue at least US$500 million bonds abroad in early 2006, the Bisnis Indonesia newspaper reported in its Monday edition.

Tthe proceeds of the bond issue will be used as as capital, especially for the import of crude oil.

The state company is also coordinating with the Ministry of Finance to search for long-term financing after the company's initial financial plan, which will be completed next month.

"The minimum value of the bond issue is $500 million. But we haven't appointed the underwriter because we do not have a selection yet, " Pertamina's director odf finance Alfred Hadrianus Rohimone

Though there was no appointment of underwriter yet, Pertamina last month approached the international rating agencies like Standard & Poor's Moody's and Fitch.

Pertamina, actually began the process to apply for the ratings.

Most probably Pertamina will start non deal roadshow to New York and London from Sept.8-9, 2005.(*)