To Finance Investment, Pertamina Releases Global Bonds Of 1.9 Billion US Dollars

JAKARTA - PT Pertamina (Persero) has released global bonds worth 1.9 billion US dollars or Rp26.6 trillion (exchange rate of Rp14,000 per US dollar).

The bonds were issued on February 3. This step was taken by the Company to be able to finance various investment plans this year.

Pertamina Finance Director Emma Sri Martini explained that the company needed capital of 10.7 billion US dollars this year. So, to be able to meet investment needs apart from company pockets, Pertamina also needs to increase funds from the issuance of these bonds.

There are also bonds consisting of 1 billion US dollars for a tenor of five years with a coupon or interest of 1.4 percent. Then, 900 million US dollars for a tenor of 10 years with a coupon of 2.3 percent.

"Last Wednesday we issued (global bonds) 1.9 billion US dollars. Both are inside the curve," he said, in a hearing (RDP) with Commission VII DPR, Tuesday, February 9.

According to Emma, the pricing and issuance time are quite good because they are carried out when the yield starts to creep up. The choice of this short tenor is also claimed to help the company reduce its financial burden in terms of interest. Because, said Emma, the longer the tenor taken, the higher the interest to be paid.

Emma explained that the global bond issuance will use the financial books of September 2020. Later, the proceeds will be used to meet the company's capital expenditure (capex) or investment.

"Why do we choose the shorter tenor, this is also for our lowering the cost of the date, so yesterday the tenor was long, with a long tenor of course the coupons will also get bigger," he explained.

Meanwhile, from the performance side, Emma said Pertamina posted a profit of 1 billion US dollars or Rp14 trillion at the end of 2020. This happened after the company lost Rp 11 trillion in the first semester of 2020.

"Alhamdulillah, with various efforts we have been able to reduce losses and even posted a positive position at the end of 2020, with a profit of 1 billion US dollars to Rp14 trillion," he said.