Apexindo to sell Rp 750 billion of bonds

IDX-listed drilling rig firm PT Apexindo Pratama Duta Tbk plans to sell Rp 750 billion (1US$ = Rp11,320) of bonds next month to help expand its business and refinance debts.

Apexindo will issue Rp 500 billion of five-year conventional bonds and Rp 250 billion of Islamic bonds, known as Ijarah sukuk, it said in a prospectus published in Bisnis Indonesia today.

Apexindo hired PT CIMB Securities Indonesia, PT DBS Vickers Securities Indonesia and PT Mandiri Sekuritas, a unit of PT Bank Mandiri to help arrange the sales.

Muslim Shariah law forbids interest payments, so Ijarah sukuk are based on a leasing contract and pay a profit distribution to investors rather than interest.

In June last year, Mitra Rajasa Tbk has signed Rp.5.19 trillion (US$558 million) deal to acquire 80.57 percent shares of Apexindo from oil, gas firm PT.Medco Energi Internasional Tbk and Encore International Pte. Ltd.

Apexindo has 8 land rigs and 6 offshore rigs which consist of four submersible swamp barge rig: Maera, Raisis, Raissa and Yani; and two jack-up Raniworo and Soehanah. (*)