Adding More Debt, PGE Management Asked For Transparency Regarding The Issuance Of Green Bonds 400 Million US Dollars

Illustration. (Photo: Doc. Antara)

JAKARTA - The management of PT Pertamina Geothermal Energy Tbk (PGEO) was asked to immediately provide an official statement regarding the results of the issuance of green bonds offered to the global market worth 400 million US dollars.

Capital Market Observer and Finvesol Consulting CEO Fendy Susianto said PGEO management should deliver official notifications to shareholders, including the public and authorities, even though the green bond was published abroad.

Until now, he explained, there has been no official statement from PGEO management regarding this achievement. Information is only in the form of oversubscribed news sourced from an anonymous investment bank.

"Given this material information that can affect the value and movement of PGEO's shares, it should be announced as a form of openness," he said, Tuesday, May 23.

"If the statement related to the excess demand for the green bond is true," said Fendy, management should be proud to reveal it.

"In my opinion, there must be an official announcement as an obligation for issuers, even though the green bond is outside Indonesia's area," he said.

Even Fendy suspects that this information was deliberately raised to the public so that the company could increase capital through further debt instruments.

"Because all proceeds are used to pay off the company's loans," he said.

Currently, he explained, PGEO is is issuing green bonds outside Indonesia amounting to 400 million US dollars or around Rp. 6 trillion with 5.15 percent coupon per year due in 2028.

PGEO will use the proceeds from bond emissions to pay off the entire remaining short-term debt of 600 million US dollars which will mature on June 23, 2023. However, the company only cut the bond emission value by 400 million US dollars from the previous target of 600 million US dollars-800 million US dollars.

"All of them are to pay off debts," he said.

Meanwhile, in its financial statements, the company stated that as of December 31, 2022, the company had a negative working capital balance of US$424,475. Negative working capital shows that the company's current debt is greater than its current assets.

At the same time, PGE's total debt was recorded at 943.28 million US dollars consisting of long-term bank loans after deducting parts that will mature in one year worth 327.7 million US dollars. Meanwhile, the company's short-term debt or current debt was recorded at around 615.58 million US dollars.