Tongkang sets coupon rates for bonds

PT Pertamina Tongkang, the shipping unit of state-owned oil and gas company Pertamina, has set the coupon rates of its dollar-denominated bonds at between 7 and 8 percent and its rupiah bonds at between between 12-12.625 percent.

The firm launched on Wednesday $90 million of dollar bonds and Rp 225 billion ($26.6 million) of rupiah bonds.

Company president Santoso Djoko Koesoemo told reporters that the proceeds from the bond issues would used to purchase 12 locally and foreign made tankers to carry fuel and crude.

?These are the first bonds to be issued by Pertamina?s group,? he said.

The dollar bonds will have a tenor of seven years and the rupiah bonds, a tenor of eight. Both issues will be listed on the Surabaya Stock Exchange Nov. 7.

PT Citigroup Securities Indonesia and PT Bahana Securities are joint-lead underwriters for the bond issues.

According to Santoso, the bonds are rated AA by local rating firm Pefindo. (Alex)