Medco cancels its plan to issue bonds due to Iraqi war

Publicly listed oil and gas company PT Medco International Tbk has delayed its plan to issue US$150 million bonds after the company learned that the United States attack against Iraq could no longer be avoided despite the worldwide protest, Kompas daily reported on Thursday.

Medco?s chief financial officer Sugiharto said that the seven-year bonds would be only issued after the war ended to ensure that the bonds, which would be floated in the U.S. stock exchange, would receive a positive response from the public.

"We initially plan to carry out international road show this month. But we have decided to cancel it because most of the people still focus their attention on the war," he was quoted as saying.

The U.S has threatened to attack Iraq if Iraqi President and his family refused to leave their country on the deadline on Thursday morning (Indonesian western time). AFP reported that the U.S. forces had attacked Iraqi military facilities hours before the deadline ended.

The funds to be raised from the bond issuance would be used to back up the company?s expansion plan which would include acquisition of several oil and gas fields in the country. The expansion plan is estimated to absorb funds amounting to about US$300 million or equivalent to about Rp 2.7 trillion. (*)