PGN Pays Remaining IDR 6.38 Trillion Bonds

Rupiah (Photo: Antara)

PT Perusahaan Gas Negara Tbk (PGN) reported having paid off the remaining bonds worth US$ 396,709,000 or equivalent to Rp. 6.38 trillion (current exchange rate of Rp. 16,071 per US dollar).

The timely release due to maturity in 2024 is part of the total repayment of the value of bonds of 1.35 billion US dollars issued in 2014 and recorded on the Singapore Exchange. The repayment was carried out according to the maturity period for the Debt Letter.

This repayment is carried out using a combination of internal funds and credit facilities owned by PGN since 2023. The value of 2024 settlement is in accordance with the remaining debt securities that are still circulating after several corporate actions carried out by Management to buy back the bonds in 2022 and 2023.

In 2022 PGN will partially repurchase this debt worth 400 million US dollars. This action was then resumed by making a buyback of 553,440,000 US dollars in 2023.

PGN Finance Director, Fadjar Harianto Widodo said, this repayment is part of a management strategy for PGN's liabilities which aims to strengthen the company's financial performance and increase investor confidence.

"This step shows our commitment to maintaining company financial stability and providing more value to investors," said Fadjar.

Fadjar said, then PGN will remain committed to implementing the work program that has been prepared and including the investment plan that will be held this year while still monitoring the latest developments in the global situation.

Fadjar said, after this payment, it is hoped that it can have a positive impact on PGN's financial performance in the future, especially in aspects related to interest expense and strengthen the company's financial position. This will also strengthen the operational work plan where the opportunity for natural gas utilization during the transition period, PGN will take a leading role in increasing the use of natural gas by integrating existing infrastructure to further develop, including the aggregation of natural gas commodities.

"With the integration and aggregation of infrastructure and gas molecules, PGN will be able to meet demand-demand needs at new economic points, new industrial areas, through various modes of gas transportation and types of natural gas molecules including CNG LNG for the sake of new economic growth which has an impact nationally," concluded Fadjar.