Friday, June 14, 2024

PGN repays remaining US$396 million bonds on time

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Gusty da Costa




Jakarta, May 27, 2024 − PT Perusahaan Gas Negara (PGN), a gas subholding of State energy company PT Pertamina, has paid off the remaining bonds worth US$396,709,000 in accordance to the maturity date as part of the repayment of the overall bond value of US$1.35 billion issued in 2014 and listed on the Singapore Exchange.

This bond repayment was covered by a combination of internal funds and credit facilities owned by PGN since 2023. The amount is in accordance with
the remaining Notes that are still outstanding after several corporate actions taken by the Management to repurchase the Notes in 2022 and 2023.

In 2022 PGN repurchased a portion of the Notes totalling US$400,000,000. This action was then continued by repurchasing US$553,440,000 in 2023.

This repayment is part of PGN’s liability management strategy aimed at strengthening the company’s financial performance and increasing investor confidence. “This step shows our commitment to maintaining the company’s financial stability and providing more value for investors,” PGN’s Finance Director, Fadjar Harianto Widodo, said in a statement on May 27, 2024.

He added that PGN remains committed to implementing the work program that has been prepared and including the investment plan that will be held this year while still monitoring the latest developments in the global situation.

This post-payment is expected to have a positive impact on PGN’s financial performance going forward, especially in aspects related to interest expenses and strengthening the company’s financial position. This will also strengthen the operational work plan where opportunities for natural gas utilization in the transition period, PGN will take a leading role in increasing natural gas utilization by integrating existing infrastructure to further develop including the aggregation of natural gas commodities.

“With the integration and aggregation of infrastructure and gas molecules, PGN will be able to meet the needs of demands in new economic points, new industrial areas, through various modes of gas transportation and types of natural gas molecules including CNG LNG for new economic growth with national impact,” Fadjar concluded.

Separately, Pertamina’s VP Corporate Communication, Fadjar Djoko Santoso said that PGN’s strategic move provides additional energy and aggressiveness for Pertamina as a corporation to become stronger as one of the state-owned companies in the energy sector in gaining investor confidence through its financial performance.

“PGN is one of the backbones of Pertamina’s business in gas management and strengthens Pertamina’s position before investors through PGN’s liabilities and provides more value through financial performance,” Fadjar said.

Gusty da Costa






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