Energi Mega to issue $500 million bonds

Privately-owned oil and gas company PT Energi Mega Persada Tbk will issue US$500 million bonds. The dollar-denominated bonds will be due for payment in 2010, the Investor daily Indonesia newspaper reported in its Friday edition

A source told the Investor daily that the proceeds of the bond will be used to refinance the company?s debt as well as to develop several oil fields.

?Energi Mega Persada has already appointed Credit Suisse First Boston (CSFB) and Merrill Lynch as its underwriters for the issue of bonds,? the source said.

Both the underwriters are already working as the company?s financial advisers.

Energi Mega Persada, which is linked to the Bakrie family, has already completed its $275 million project financing in June this year. The project financing, which was arranged through CSFB, was used for drilling of Kangean oil field in Central Java.

In the first week of August 2005, the company also issued $120 million notes, which was arranged by Merrill Lynch. (*)