Pertamina Tongkang plans $90m, Rp225b bonds: Report

PT Pertamina Tongkang, the shipping unit of national oil and gas company Pertamina was issuing $90 million of dollar-denominated bonds in the local market, less than $100-$150 million originally expected, according to Dow Jones.

Instead Pertamina Tongkang will offer 225 billion rupiah ($1=Rp8,460) worth of rupiah bonds, as demand for those bonds in the local market is stronger, people close to the deal said.

That's because Indonesian pension funds still impose limits on their investment in assets denominated in foreign currencies.

The dollar bond will have a tenor of seven years and the rupiah bond, a tenor of eight. Both issues will be listed on the Surabaya Stock Exchange Nov. 7. Coupons for the two tranches haven't yet been decided, the company said in a statement.

Proceeds from the bond issue will go toward ship purchases and working capital. PT Citigroup Securities Indonesia and PT Bahana Securities are joint-lead underwriters for the issue. (*)