JAKARTA: PT Pertamina (Persero) acknowledges partial proceeds from the global bonds worth U.S. $ 1.5 billion will be used to fund a proposed merger or acquisition.
Pertamina finance director Afdal Bahaudin say it will be used to fund additional capital expenditure (capex) this year the company, such as for purchase of ship rig, mergers and acquisitions.
"The funds will be used for additional capex. Not to know exactly for what, but certainly for general purpose. Funds were also to purchase the rig, mergers and acquisitions," he said (Tuesday, 31/05/2011).
He also said there were about 230 candidates for institutional investors who are interested to buy bonds denominated in U.S. dollar company. However, when it is confirmed whether the funds were to finance the acquisition of West Madura block and Angola, he was reluctant to say.
"There are about 230 potential investors, all institutions. There is also the banking, both in Asia and America. Anyway it for acquisitions and mergers, ass [block where], see later," he said.
This year, the company allocates capex Rp37, 1 trillion. The funds are partly derived from internal cash, bond yields, and bank loans. However, he was reluctant to mention in detail the composition.
Afdal also recognize that state-owned oil and gas still has a loan facility from a number of banks and funds will be used if necessary. However, he was reluctant to mention the value of the loan.
"Capex is part of the bonds, there is also a loan. Our facility is open only. Stand by loan would have to be there. All kinds, from state-owned banks there is also another. [The amount] just as we wanted with our new melt. Funding bank financing is not the only project, there are also construction financing, all kinds, "he explained.
He said the allocation of capex this year, about 70% -80% will be used for business development for the upstream and downstream rest.
Based on the record business, Pertamina, which was held at the AGM earlier this year, the company agreed capex allocation amounting to Rp37, 1 trillion, an increase of 86.4% compared to Rp19, 9 trillion a year ago.
Of the total capex that, as much as Rp28, 4 trillion or about 76.4% will be used for the upstream sector and the rest around Rp8, 7 trillion, or 23.6% is used for development in the downstream sector.
As is known, the company issued two global bonds amounting to U.S. $ 1 billion 10-year and U.S. $ 500 million 30-year tenured. Both were oversubscribed respectively seven times and 10 times. Acting as bond underwriters are Credit Suisse, Citibank, and HSBC. (*)
Pertamina finance director Afdal Bahaudin say it will be used to fund additional capital expenditure (capex) this year the company, such as for purchase of ship rig, mergers and acquisitions.
"The funds will be used for additional capex. Not to know exactly for what, but certainly for general purpose. Funds were also to purchase the rig, mergers and acquisitions," he said (Tuesday, 31/05/2011).
He also said there were about 230 candidates for institutional investors who are interested to buy bonds denominated in U.S. dollar company. However, when it is confirmed whether the funds were to finance the acquisition of West Madura block and Angola, he was reluctant to say.
"There are about 230 potential investors, all institutions. There is also the banking, both in Asia and America. Anyway it for acquisitions and mergers, ass [block where], see later," he said.
This year, the company allocates capex Rp37, 1 trillion. The funds are partly derived from internal cash, bond yields, and bank loans. However, he was reluctant to mention in detail the composition.
Afdal also recognize that state-owned oil and gas still has a loan facility from a number of banks and funds will be used if necessary. However, he was reluctant to mention the value of the loan.
"Capex is part of the bonds, there is also a loan. Our facility is open only. Stand by loan would have to be there. All kinds, from state-owned banks there is also another. [The amount] just as we wanted with our new melt. Funding bank financing is not the only project, there are also construction financing, all kinds, "he explained.
He said the allocation of capex this year, about 70% -80% will be used for business development for the upstream and downstream rest.
Based on the record business, Pertamina, which was held at the AGM earlier this year, the company agreed capex allocation amounting to Rp37, 1 trillion, an increase of 86.4% compared to Rp19, 9 trillion a year ago.
Of the total capex that, as much as Rp28, 4 trillion or about 76.4% will be used for the upstream sector and the rest around Rp8, 7 trillion, or 23.6% is used for development in the downstream sector.
As is known, the company issued two global bonds amounting to U.S. $ 1 billion 10-year and U.S. $ 500 million 30-year tenured. Both were oversubscribed respectively seven times and 10 times. Acting as bond underwriters are Credit Suisse, Citibank, and HSBC. (*)
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