Medco?s yankee bonds oversubscribed by 400 percent

PT Medco Energi International has received orders worth over US$1.2 million for the company?s US$250 million bonds which would be soon offered to the public through the U.S. stock market, Bisnis Indonesia reported on Monday.

"The orders reflect an over subscription of four times or 400 percent," said the company?s chief financial officer Sugiharto said in Jakarta upon his arrival from an international road show on Saturday.

Sugiharto said that the strong interest given to the senior and unsecured fixed rate yankee bonds reflected investors? strong confidence in the company?s future. According to him, 46 percent of the yankee bonds which offer a fixed rate coupon of 8.75 percent per annum would be sold to Asian investors (11 of which will go to Indonesian investors), 30 percent to American investors and 24 percent to European investors.

Medco will be the second Indonesian company to issue yankee bonds after PT Telkomsel. A yankee bond, long-term security notes issued by foreign companies in the U.S., remains attractive despite the drop in the value of the U.S. dollar. (*)