Apexindo to launch Rp510 b bonds next week

Publicly listed drilling contractor PT Apexindo Pratama Duta said it will issue five-year bonds worth Rp510 billion at a fixed coupon rate of 12.25 percent and Syariah Ijarah bonds worth Rp240 billion next week to refinance debts.

In a prospectus released Friday, Apexindo said proceeds from the Rp510 billion bond issues will be used to refinance two syndicated loans of US$17.5 million and US$27.8 million from Fortis Bank NV of Singapore.

It will also refinance part of its $22.5 million debt to affiliate Medco Energi Finance Overseas BV and, combined with the Syariah Ijarah bonds, a portion of a $30 million bridging loan from Standard Chartered Bank.

The offer period for both bond issues is April 4-6 with their listing on the Surabaya Stock Exchange scheduled for April 11.

Apexindo has appointed PT Mandiri Sekuritas, PT Andalan Artha Advisindo Sekuritas and PT Standard Chartered Securities Indonesia as the underwriters of the issues.

Earlier, Indonesian rating agency Pefindo assigned “A-” ratings to Apexindo’s proposed Rp600 billion (US$ = Rp9,280) bond I/2005 as well as “A-(sy)” rating to proposed Rp150 billion Syariah Ijarah bond.

Apexindo operates 11 land rigs and 5 offshore rigs, which consist of 4 swamp barge rigs and 1 jack-up rig. The company’s main customers include Total E&P Indonesie, Statoil, Unocal, and Vico.

Apexindo is a 77.53 percent owned subsidiary of publicly listed oil and gas firm PT Medco Energi Internasional Tbk. (Robert)