Three consortium compete to become Pertamina?s underwriter

Three consortiums of local and foreign securities companies are competing for a place to underwrite state owned oil and gas company Pertamina?s planned bond issue worth about US$130 million, Bisnis Indonesia reported on Monday.

The three bidders comprise of a consortium of PT Mandiri Sekuritas and UBS Warbung, a consortium of Credit Suiss First Boston, and a consortium of PT Bahana Sekurities and Citicorp Securities. The three consortiums have been formally short-listed as the bidders but no decision has been made which of the three consortiums has won the place.

Pertamina?s finance director, Ainun Naim, said recently that Pertamina planned to issue bonds worth about US$130 million to finance its expansion activities. The bond will be issued immediately after the formal change in the company?s status into an "ordinary" company within the next six months.

The new oil and gas law which was introduced early last year removed Pertamina?s exclusive status. As the consequence, the company will act as an ordinary company and no longer relies on the government?s funds to carry out its activities.

Ainun said that funds to be raised from the issuance of the bond which will mature between eight and 10 years would be partly used to procure two large crude oil carriers from Hyundai shipbuilding company in South Korea.

The new crude oil carriers will strengthen the state oil and gas company?s oil tanker fleet which is now operated by its subsidiary Pertamina Tongkang. (*)