Pertamina's unit to issue bond

Pertamina's unit to issue bond

JAKARTA: Indonesia's state-owned oil and gas company Pertamina plans to issue a $250 million bond later this year, via one of its units, to finance the buyout of a geothermal power plant, a company official said Monday.

The official, who declined to be named, said Pertamina is planning to buy over the 220-megawatt Wayang Windu power project from PT Mandala Nusantara, a company owned by former President Suharto's youngest son Hutomo Mandala Putra, also known as "Tommy." The development of the power plant was halted during the 1997 Asian financial crisis.

"We haven't decided which unit we will choose to issue the bond," the official added.

He said further details of the bond are unavailable.

He added that Pertamina is seeking various ways, including bond issues, to raise funds to finance investment projects. -- Dow Jones