Pertamina Tongkang to issue bonds in August

PT Pertamina Tongkang, a unit of state oil and gas firm Pertamina dealing with crude oil and oil fuel shipment, will in late August issue bonds worth US$160 million to purchase 10 crude oil tankers, a company official said Wednesday.

?The bond issuance is planned for late August or early September of this year,? said Pertamina?s deputy director of shipping affairs, Ibrahim Hasyim.

On Tuesday, officials of Pertamina and underwriters Bahana Sekuritas and CitiGroup met to further discuss preparations for the bond issuance, Ibrahim told reporters. Pertamina?s deputy finance director Hilda Zaenal said recently the underwriters had started conducting due diligence audit on Pertamina Tongkang.

Ibrahim said that the 10 tankers to be bought by Pertamina Tongkang were among the 12 crude carriers currently needed by Pertamina. The procurement of the 12 tankers would cost Pertamina $300 million, he added.

Pertamina currently operates 130 crude and fuel tankers, of which 32 were owned by the firm, Ibrahim said. (godang)