Tongkang plans $90m, Rp 225b bonds

Tongkang plans $90m, Rp 225b bonds

JAKARTA: Indonesia's PT Pertamina Tongkang, the shipping unit
of national oil and gas company Pertamina, on Tuesday said it's
issuing US$90 million denominated bonds in the local market, less
than $100-$150 million originally expected.

Instead Pertamina Tongkang will offer Rp 225 billion
(US$26.5 million) worth of rupiah bonds, as demand for those
bonds in the local market is stronger, people close to the deal
said.

That's because Indonesian pension funds still impose limits on
their investment in assets denominated in foreign currencies.

The dollar bond will have a tenor of seven years and the
rupiah bond, a tenor of eight. Both issues will be listed on the
Surabaya Stock Exchange Nov. 7. Coupons for the two trances
haven't yet been decided, the company said in a statement.

Proceeds from the bond issue will go toward ship purchases and
working capital.

PT Citigroup Securities Indonesia and PT Bahana Securities are
joint-lead underwriters for the issue.--Dow Jones