Pertamina raises $1.5bn landmark bond

The Indonesian state-owned oil and gas company sold a 30-year note, achieving the tightest spreads on record compared to the sovereign.

Pertamina has issued a $1.5 billion 30-year bond, obtaining the tightest ever spread compared to the Indonesian sovereign as US investors scramble to hold credit from the country’s scarce high-yield space.

According to Dealogic data, Indonesia’s high-yield bond market has only seen volume of $606 million with four deals year-to-date, which is more than a third less than 2013’s volume of $2.1 billion with six deals.

This has allowed Pertamina, the Indonesian state-owned oil and natural gas company, to price its 144AReg S-registered deal at the tightest spread on record, a source close to the deal said.

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