Indonesia’s Pertamina Geothermal considers issuing green bonds to fund expansion

INDONESIA’S Pertamina Geothermal Energy, a unit of state energy company Pertamina, is considering issuing green bonds to help fund its expansion following an initial public offering (IPO), its spokesperson said on Tuesday (Feb 14).

The company’s IPO scheduled this month has a top end price range of between 875 rupiah and 880 rupiah a piece valuing it at up to 9.11 trillion rupiah (S$797.2 million), the largest in Indonesia in almost a year after the US$1.1 billion listing of tech firm GoTo in April.

Muhammad Baron, Pertamina Geothermal Energy’s spokesperson, said green bonds were among the funding mechanisms that the company is considering and “reviewing internally”.

Bisnis.com cited the company’s director of finance as saying on Monday that the company planned to issue green bonds “shortly”.

He did not specify the size of the bond issue.

The company’s IPO comes as Pertamina aims to double its geothermal capacity by 2027-2028, which may cost an estimated US$4 billion.

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Indonesia's Pertamina Geothermal tightens price in IPO worth up to 9.11t rupiah

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Pertamina Geothermal is selling 10.35 billion shares or 25 per cent of the enlarged share capital. Most of the IPO proceeds will be invested into expanding the capacity of its working geothermal areas, its prospectus said.

The public offering is scheduled for Feb 20-22. REUTERS