Govt urges Tongkang to drop bond plan<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
State Minister of State Enterprises Laksamana Sukardi said on
\nMonday that he would ask PT Pertamina Tongkang, the shipping unit
\nof state-owned oil and gas company PT Pertamina, to drop its plan
\nto issue bonds.<\/p>\n
"Tongkang is just a supporting company for Pertamina, they
\ndon't need to issue bonds. It is Pertamina as the controlling
\ncompany that can issue them," said Laksamana without further
\nelaboration.<\/p>\n
He also said that the interest rate carried by the bonds was
\ntoo expensive, which in turn would heavily burden Pertamina.<\/p>\n
He added that Tongkang's debt to equity ratio was already too
\nhigh.<\/p>\n
Laksamana is also the new chief commissioner of Pertamina.<\/p>\n
Tongkang is finalizing plans to issue rupiah and dollar
\ndenominated bonds worth Rp 225 billion (US$26.5 million) and $90
\nmillion respectively in the local and international market. The
\nproceeds will be used to finance ship purchases and for working
\ncapital.<\/p>\n
The dollar bond will have a tenor of seven years, while the
\nrupiah bond an eight-year tenor. Both issues will be listed on
\nthe Surabaya Stock Exchange on Nov. 7.<\/p>\n
Coupons for the two tranches have not yet been decided.<\/p>\n
PT Citigroup Securities Indonesia and PT Bahana Securities are
\njoint-lead underwriters for the issue.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-urges-tongkang-to-drop-bond-plan-1447893297",
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