Heaptalk, Jakarta — Pertamina Hulu Energi (PHE), an upstream oil and gas subsidiary of Pertamina, has debuted in the international capital market by issuing a US$1 billion global bond on the Singapore Exchange.
This five-year bond was issued under the Reg S / 144A scheme, marking the most significant bond issuance by an Indonesian corporation since 2022. It was offered at par with a coupon rate of 5.25% and received a Baa2 rating from Moody’s Investor Service and a BBB from Fitch Ratings.
The bond issuance received an overwhelming response from global investors, with total demand reaching over US$2.4 billion, 2.4 times oversubscribed compared to the initial offering. The proceeds will be used for various corporate needs, including repaying near-maturity debt and strengthening capital expenditure (capex).
In more detail, the bonds were absorbed by 142 global investors, with allocations spanning Asia (43%), the United States (30%), and Europe, the Middle East, and Africa (EMEA) (27%). By investor type, the breakdown was: 78% to asset managers/fund managers, 10% to insurance companies/pension funds, 5% to sovereign wealth funds/central banks/official institutions, 4% to banks, and 3% to private banks/other entities.
Supporting national energy resilience
In advance, the bonds are scheduled to mature on May 21, 2025, and will be listed on the Singapore Exchange. Citigroup, Deutsche Bank, HSBC, Mandiri Securities, and MUFG acted as Joint Bookrunners for the transaction.
PHE expressed gratitude for the strong investor interest. Dannif Danusaputro, PHE’s Finance and Investment Director. “The positive response from global investors reflects their confidence in PHE’s operational and financial performance, as well as our strategic role in supporting national energy resilience,” he stated.
This global bond is part of PHE’s Global Medium-Term Note (GMTN) Program, launched in early May 2025. Following the program, PHE conducted intensive investor meetings, engaging with over 100 investors from Asia, America, and Europe via online sessions. Investors showed strong interest in the company’s environmental, social, and governance (ESG) policies and strategies.
In response, Dannif reaffirmed PHE’s ESG commitments. “We are committed to responsible operations while upholding ESG principles, in line with our goal of creating sustainable value for stakeholders,” he concluded.
