PGN Settles US Dollar Bonds, Demonstrates Healthy and Sustainable Performance Management

Jakarta – PT Perusahaan Gas Negara Tbk, as Subholding Gas Pertamina, has taken another strategic step by settling the US dollar-denominated bonds issued by its subsidiary, PT Saka Energi Indonesia (SAKA). SAKA has repaid bonds worth USD 156 million on May 5, 2024. These senior bonds were originally issued by SAKA on May 5, 2017, with a 7-year term on the Singapore Exchange (SGX), totaling USD 625 million.

In 2022, as part of the company's strategy to enhance business efficiency, SAKA repaid a portion of these bonds, amounting to USD 248.787 million. This was followed in 2023 with a repayment of USD 220 million.

“The funds used to repay SAKA's bonds were 100% sourced from internal cash. This repayment will not impact SAKA or PGN’s liquidity,” said PGN’s Corporate Secretary, Rachmat Hutama, on May 14, 2024.

In addition to SAKA’s bonds, PGN is also set to repay another bond issuance worth USD 397 million on May 15, 2024. This senior unsecured fixed-rate bond, issued on May 12, 2014, with a value of USD 1.35 billion, is due on May 16, 2024.

Previously, PGN also repaid part of its bond listed on the Singapore Exchange Securities Trading Limited, with repayments of USD 400 million in 2022 and USD 553.291 million in 2023.

“This repayment of PGN's bonds will be funded through a combination of internal and external sources, in line with the budget outlined in the company's 2024 RKAP. The Bank of New York Mellon acts as the trustee for these bonds,” added Rachmat.

The settlement of these USD-denominated bonds by PGN and SAKA is expected to strengthen PGN's long-term business sustainability. As a subholding gas, PGN plays a strategic role in realizing the energy transition programs set by the government.

“PGN's commitment is to maintain healthy and sustainable performance management. This will allow PGN to play an even broader role in increasing domestic natural gas utilization and expanding its reach into the global market,” concluded Rachmat.

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