Pertamina eyes funds onshore for slice of $1.8bn as Indo picks up

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By Shruti Chaturvedi
30 Oct 2014

Indonesia’s Pertamina, which has mandated 12 lenders for its $1.8bn five year loan, will fund a portion of the financing onshore. This onshore/offshore split has become a common feature of deals from the country and is set for a boost as positive sentiment following the recent presidential election pushes down pricing, writes Shruti Chaturvedi.

The state owned gas company has decided to raise $500m of its $1.8bn financing onshore. While it will have to pay a premium over offshore dollars to access dollar liquidity onshore, it will also save, as the onshore portion will not be subject to withholding tax, said bankers.

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