Hunted, Green Bond Pertamina Geothermal Energy Oversubscribed Up To 8.25 Times

Bond illustration (Photo: Doc. Antara)

JAKARTA - The issuance of green bond (green bond) by PT Pertamina Geothermal Energy (PGEO) received a warm welcome from investors in the global market.

PGEO managed to record 400 million US dollars on 27 April 2023. Pertamina Geothermal Energy Finance Director Nelwin Aldriansyah revealed that the Company used the funds to refinancing geothermal resource development projects that had been carried out to provide access to reliable and affordable clean and environmental energy for the people of Indonesia.

"The use of funds for refinancing is in accordance with the Eligibility Criteria that has been established in the Green Financing Framework PGE. This framework is in line with the 2021 Green Bonds Principles, the 2021 Green Loan Principles, and the 2018 ASEAN Green Bonds Standards," he told the media, Tuesday, May 23.

He added that PGE's green bond became a premium bond in the secondary market which was recorded in the Singapore Exchange Exchange Trading Limited (SGX-ST) or Stock Exchange in Singapore. The interest obtained by PGE's green bond is also very competitive, which is 5.15 percent.

This percentage shows investor confidence in PGE's business prospects.

Nelwin further added that from the value of the issuance of this green bond, PGE managed to record oversubscribed up to 8.25 times or worth 3.3 billion US dollars.

"The positive sentiment we get shows investor confidence in potential investment in the geothermal sector in particular and renewable energy (EBT) in Indonesia. This high enthusiasm also strengthens our commitment to developing green energy potential in Indonesia," said Nelwin.

Nelwin added, fundamentally, PGEO currently has strong funds for the initial stages of business development. Mainly, he said, in terms of achieving an additional target of 600 megawatts (MW) of installed capacity in the next five years.

"This green bond fund is a stimulus that will strengthen PGE's business in the future," he said.

From Moody's rating, PGEO managed to get Baa3 (Stable) and BBB- (Stable) ratings from Fitch Rating. Both ratings show that PGEO has strong business fundamentals so it has promising investment projections in the future.