Medco?s bond offering oversubscribed
Tuesday, June 2 2009 - 03:30 AM WIB
Originally the issued size of the planned bond is Rp 1 trillion with fixed interest rate, at 100 percent par value. However, during the book building period the demand for the Bond has reached Rp 1.784 trillion or oversubscribed by 1.78 times. Due to the high demand, MedcoEnergi decided to increase its bond offering up to Rp 1.5 trillion, the firm said in a statement on Monday.
The Bond will be offered in two tranches. Series A which will have a 3-year tenor with an interest rate of 13.375 percent and Series B which will have a 5-year tenor with an interest rate of 14.250 percent. The bonds are due in 2012 and 2014 respectively. Interest coupon of the bond will be paid every three months.
Proceeds from the bond offering after cost of issuance will be used to fund the companies growth. Around 30 percent of the proceeds will be allocated for working capital, and 70 percent for capex.
The Company has appointed PT Bahana Securities, PT Oanareksa Securities, PT Andalan Artha Advisindo and PT Kresna Graha Sekurindo as Joint Lead Underwriters. Acting as Trustee is PT CIMB Bank Niaga Tbk. (*)