Medco raises Rp 388b from fourth bond issue
Tuesday, March 28 2017 - 02:08 AM WIB
IDX-listed energy company PT Medco Energi Internasional Tbk announced Monday it has issued bonds worth Rp 388 billion, the proceeds of which are expected to be used among others to repay loans and finance smelter project.
The company said in a statement that this fourth bond issue comprises of three series of bonds including A series worth Rp 380 billion with fixed interest rate of 10.8 percent and maturing in three years; B series worth Rp 1 billion with interest rate of 11.3 percent maturing in five years; and C series worth Rp 7 billion with interest rate of 11.8 percent maturing in seven years.
Company President Commissioner Muhammad Lutfi earlier said that the size of the fourth bond issue was expected at Rp 900 billion, the proceeds of which to be used to repay some of its Singapore-dollar bonds, finance the construction of its new smelter and its operations.
The company has announced plan to raise a total proceeds of Rp 5 trillion through series of bond issues. During the period of June to December, the company issued the first three parts of the bonds worth a total of Rp 2.77 trillion.
Lutfi said that about 60 percent of the bond proceeds will be used to repay some of its Singapore-dollar bonds maturing in May 2018. Meanwhile, he said 40 percent of the funds would be used for the company?s capital expenditure, including for constructing a new smelter and future acquisition.
Medco Energi announced on Nov. 2 that it had officially acquired 50 percent stake owned by PT Amman Mineral Investama, which controls an 82.2 percent stake of PT Newmont Nusa Tenggara.
Newmont Nusa Tenggara, which has changed its name to PT Amman Mineral Nusa Tenggara, operates the Batu Hijau mine ? the country?s second-largest copper and gold mine in Sumbawa ? which produced 240 million pounds of copper and 300,000 ounces of gold in 2015.
The newly acquired company was granted by the Trade Ministry an export permit for its copper concentrates on Feb. 22, following its commitment to start the construction of its new smelter worth around $500 million by year-end, or early next year.
Editing by Reiner Simanjuntak