PT Pertamina (Persero) will start offering IDR1.5 billion bonds in September to support the capital expenditure.
The state-owned oil company has appointed three securities firms, namely Citigroup, HSBC, and Credit Suisse to underwrite the issues bond.
The company plans to issue 7 year and 10 year bonds. For this year, Pertamina plans to allocate capital expenditure (capex) amounting IDR46 trillion, incrase from the initial proposal at IDR37 trillion.
Most of the capex will be allocated for sustaining its upstream business through a number acquisitions on oil and gas blocks, both in Indonesia or overseas, besides the development of oil and gas refineries.
The rest of the fund will be used to finance the development of its downstream business. Related to the bond issuance plan and being non-listed public company, Pertamina has a deadline to finalize its financial report in April. However, until now the 2009 financial report has not been completed.
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