Fitch Affirms 'BBB-' for Pertamina's Bonds
17 May 2013 13:30 WIB
TEMPO.CO, Singapore – Fitch credit rating agency has affirmed a 'BBB-' rating with a stable outlook to Pertamina's bonds issued in 2013. "Because it is a direct an unsecured senior bonds," Fitch stated on Friday, May 17.
This year, Pertamina issued a Global Medium-Term Bonds of US$ 3.25 billion in an effort to fund the company's capital expenditures and general necessities. Fitch's 'BBB-' rating is hoped to significantly increase medium-term capital expenditures to improve upstream production and allow a more flexbile rig operations.
Pertamina's Director of Investment Planning and Risk Management, Afdal Bahaudin, confirmed that the bonds will be issued in two tranches of US$ 1.625 billion each. "The bonds werre issued to support investment, especially in the upstream sector," he said.
Bahaudin explained that the two tranches have different terms and coupons. The first tranche has a 10-year term with 4.3 percent yield , while the second has a 30-year term with 5.625 percent yield.
AYU PRIMA SANDI
