Indonesia's state owned energy, Pertamina plans to issue above US$2 billion bonds. The company plans to use fund from bonds issuace for upstream and down stream investment. Pertamina made its global bond debut in 2011 with two phase offering.
On May, 2012, Pertamina sold US$1.5 billion global bonds with two tranche, US$500 million of 30 year bonds and US$1 billion of 10 year bonds. The company was set up capex annualy US$6 billion-US$7 billion in 2012 until 2014.
Pertamina's financial risk profile is "significant," in Standards & Poor view. The rating agency expect Pertamina's credit ratios to weaken due to the company's substantial capital expenditure plans of about US$6 billion-US$7 billion annually in 2012-2014. This expenditure will be partially debt funded. S&P expect the company's ratio of adjusted debt to EBITDA pro forma for the proposed notes to average 2.4x in 2012-2014. Credit metrics should remain within tolerance levels for Pertamina's stand-alone credit profile.
On May, 2012, Pertamina sold US$1.5 billion global bonds with two tranche, US$500 million of 30 year bonds and US$1 billion of 10 year bonds. The company was set up capex annualy US$6 billion-US$7 billion in 2012 until 2014.
Pertamina's financial risk profile is "significant," in Standards & Poor view. The rating agency expect Pertamina's credit ratios to weaken due to the company's substantial capital expenditure plans of about US$6 billion-US$7 billion annually in 2012-2014. This expenditure will be partially debt funded. S&P expect the company's ratio of adjusted debt to EBITDA pro forma for the proposed notes to average 2.4x in 2012-2014. Credit metrics should remain within tolerance levels for Pertamina's stand-alone credit profile.
The rating agency also note that the company retains some flexibility in its capital expenditure with about 27% related to acquisitions and discretionary in nature.
Pertamina has "adequate" liquidity, as defined in S&Pcriteria. The rating agency expect the company's sources of liquidity, including cash and facility availability, to exceed its uses of liquidity by at least 1.3x in the next 12 months.
Pertamina has "adequate" liquidity, as defined in S&Pcriteria. The rating agency expect the company's sources of liquidity, including cash and facility availability, to exceed its uses of liquidity by at least 1.3x in the next 12 months.
So, S&P also expect the company to maintain adequate access to external funding due to its position as the dominant integrated energy company in Indonesia, its solid business positions, and government ownership.
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