JAKARTA (Yosefardi) – Two state companies – oil and gas company PT Pertamina and utility firm PT Perusahaan Listrik Negara (PLN) – have secured approval from the state-owned enterprises ministry for issuing dollar bond worth US$6.3 billion.

Pertamina will issue dollar bond worth US$4.3 billion while PLN will issue US$2 billion dolar bond. Pertamina’s bond issue is part of its US$10 billion gobal medium term notes issue program.

Pertamina’s dollar bond has tenor of 30 years and offers annual coupon of 6.7%. Barclays, Citigroup, and HSBC will act as sales manager.

Bank Indonesia recorded state companies’ foreign debt, excluding state banks, reaches US$145.9 billion in first quarter of this year.