Medco raises $50 million from bond issue

Publicly listed energy company PT Medco Energi Internasional said Wednesday that it had successfully raised US$50 million from the sales of the company?s US dollar denominated bonds to global investors in June.

The company said that the bond offering was the first phase issuance of its US dollar denominated bonds worth US$150 million. The five-year bonds carry a coupon rate of 6.05 percent.

Medco said the yield payment for the bonds which received AA- rating and negative outlook from Indonesian rating agency Pefindo would be made every three months.

Finance Director Syamsurizal Munaf said that about 60 percent of the proceeds from the bond offering would be used to refinance the company?s debts and the other 40 percent to strengthen capital structure.

?The market situation was quite favorable for the company to offer bonds," he said, adding that the company?s success to raise $50 million reflected investors? strong confidence in the company.

PT Bahana Securities acted as underwriter of the bond offering with PT Bank Mega Tbk as trustee. (godang/giok)