Medco appoints UBS Warburg, CSFB yankee bond joint arranger

Publicly listed oil company PT Medco Energi International said Thursday it had appointed UBS Warburg and Credit Suisse First Boston Inc. to help sell the company?s US$150 million yankee bonds.

?We have selected them (UBS Warburg and Credit Suisse First Boston Inc) as the joint lead arranger and joint book runner for the bond sale,? Medco?s finance director Sugiharto told Petromindo.Com.

Sugiharto said the company would sell a minimum of $150 million bonds, but the total value could be raised depending on the market demand. Thus far, the company had not yet decided on the issuance date.

Sugiharto said proceeds from the bond issuance would be used to finance the company?s expansion program.

Sugiharto did not specify the expansion program, but early this year, company CEO Hilmy Panigoro said the company targeted a 15 percent growth for this year.

?In order to achieve 15 percent growth per annum, Medco will continue to seek farm in opportunities in Indonesia. We are interested in producing blocks which still have potentials and exploration blocks,? Hilmy said.

Standard & Poor's rates the company's foreign debt B+, four levels below investment grade. (godang/robert)