Pertamina Hulu Energi’s US$ 1 billion Global Bond Issue – Latest Update

PT Pertamina Hulu Energi (PHE) recently took a big step into the global finance scene by launching a US$ 1 billion bond in the international market. This is the largest bond to be issued by an Indonesian company since 2022. The bond, set at 5.25%, received solid ratings from Moody’s Investor Service (Baa2) and Fitch Ratings (BBB).

This substantial cash injection is earmarked for various crucial uses, such as repaying loans and boosting capital expenditure. In addition to this, the launching of the Global Medium-Term Note (GMTN) Program in May 2025 paved the way for extensive interactions between PHE and investors from Asia, America, and Europe.

At the core of PHE’s financing strategies are their commitment to running operations responsibly while prioritizing Environment, Social, and Governance (ESG) goals. Dannif Danusaputro, PHE’s Director of Finance and Investment, emphasized this dedication, highlighting the company’s aim to create sustainable value for stakeholders.

The overwhelming support from a wide array of global investors is a testament to their faith in PHE’s operational and financial prowess. The robust response led to a demand of over USD 2.4 billion for the bond, showcasing investor confidence in PHE’s role in bolstering Indonesia’s energy security.

142 investors worldwide made hefty contributions to this bond, with significant portions coming from Asia, the US, and Europe, the Middle East, and Africa (EMEA). Investors like asset/fund managers, insurance companies, and sovereign wealth funds actively participated, further validating PHE’s position in the market.

Settlement for this bond is scheduled for May 21, 2025, with plans to list it on the Singapore Stock Exchange. Citigroup, Deutsche Bank, HSBC, Mandiri Securities, and MUFG worked as Joint Bookrunners for this high-profile transaction.