OREANDA-NEWS. May 14, 2012. PT Pertamina (Persero) collects US2.5 billion funding from global bonds issuance, comprising two tranches - global bond with 10 years tenor and 30 years tenor, reported the press-centre of Pertamina. 

Pertamina is an integrated energy company whose business activities cover from upstream to downstream operation. Pertamina has earned BAA3 (stable outlook) rating from Moody's, BB+ (positive outlook) from Standard & Poor', and BBB- (stable outlook) from Fitch.

The 10-year Pertamina bonds, to mature in May 2022, worth USD 1.25 billion with 4.875% coupon and were issued at the price of 99.414 with yield 4.950%. The 30-year bonds that will mature in May 2042 were issued with 6.000% coupon, at the price of 98.631 and yield 6.100%.

The bonds were hope to receive rating equal to the rating received by Pertamina as a company. Pertamina intends to use the bonds for capital expenditure and company operational expenses.

Pertamina's bond offering received warm response from global investors. Demands during the offering period reached USD 9.3 billion, or oversubscribed by 3.7-fold. This shows that investors have had strong confidence on Pertamina. Pertamina previously enjoyed successful global bond offering worth USD 1.5 billion in May 2011.

Based on geographic spread, the 10-year bonds were mostly absorbed by investors from Asia region (47 %), followed by the US (29%) and Europe (24%). Based on institution, 62% of the bonds was absorbed by investment managers, 15% by banks, 8% by insurance institutions and pension funds, 7% by central banks and state investment management institutions, and 8% by private banks.

Meanwhile, the 30-year bonds were mostly absorbed by investors from the US (45%), followed by Asia (32%) and Europe (23%). As much as 75% of the bonds were allocated to investment managers, 7% to banks, 10% to insurance institutions and pension funds, 2% by central banks and state investment management institutions, and 6% by private banks.

Pertamina's President Director Karen Agustiawan praised the success of the bond issuance. "We have take it as a benchmark. Pertamina bonds are bonds with lowest coupon among all global bonds issued by Indonesian companies in international market so far. The issuance of the global bonds have shown strong support from international investors for Pertamina and their acknowledgment of Pertamina's future prospect," she said.

Barclays Bank PLC, Citigroup Global Markets Limited, and The Hongkong and Shanghai Banking Corporation Limited acted as the joint bookrunners and the joint lead managers in this transaction. Meanwhile, PT Bahana Securities, PT Danareksa Sekuritas, dan PT Mandiri Sekuritas acted as co-managers.