PGN Pays Off Remaining USD 396 Million Bonds On Time
Jakarta, May 27, 2024 - PT Perusahaan Gas Negara Tbk (PGN), a part of Pertamina Gas Sub-holding, has paid off the remaining bonds worth USD 396,709,000. This timely repayment aligns with the maturity date in 2024 and is part of the overall bond repayment of USD 1.35 billion issued in 2014 and listed on the Singapore Exchange. The repayment was carried out according to the maturity period of these bonds.
The repayment was made using a combination of internal funds and credit facilities owned by PGN since 2023. The 2024 repayment value corresponds to the remaining bonds in circulation following several corporate actions by management to repurchase these bonds in 2022 and 2023.
In 2022, PGN repurchased part of these bonds worth USD 400,000,000. This action was followed by another repurchase of USD 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 demonstrates our commitment to maintaining the company's financial stability and providing added value for investors," said the Director of Finance of PGN, Fadjar Harianto Widodo. He added that PGN remains committed to implementing the work program that has been planned, including the investment plans to be executed this year, while continuing to monitor the latest global developments.
This repayment is expected to positively impact PGN's future financial performance, especially in aspects related to interest burden and strengthening the company's financial position. It will also bolster operational work plans, as PGN will play a leading role in enhancing the utilization of natural gas during the transition period by integrating existing infrastructure and further developing natural gas commodity aggregation. "With the integration and aggregation of infrastructure and gas molecules, PGN will be able to fulfill demand in new economic zones and industrial areas through various gas transportation modes and types of natural gas molecules, including CNG and LNG, for new economic growth with a national impact," concluded Fadjar.
Separately, the VP of Corporate Communication of Pertamina, Fadjar Djoko Santoso, stated that PGN's strategic steps provide additional energy and aggressiveness for Pertamina as a corporation to become even stronger as one of the state-owned enterprises in the energy sector, gaining investor trust through its financial performance. "PGN is one of Pertamina's business backbones in gas management, strengthening Pertamina's position in front of investors through PGN's liabilities and adding value through its financial performance," said Fadjar.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social, and Governance (ESG) implementation across all Pertamina's business lines and operations.**