Medco sets coupon for Rp 1.2 trillion bond

Jakarta listed oil and gas firm PT Medco Energi Tbk has set a coupon rate of 13.125 percent for its Rp 1.2 trillion ($127.4 million) five-year bond issue, an official from one of the underwriters said on Monday.

The rate was within a previously set 12.25-13.50 percent range.

The official declined to give further details.

Medco has said it would use the proceeds to fund business expansion, refinance debt and strengthen its working capital. It plans to list the bond on the Surabaya Stock Exchange, in the first week of July.

Meanwhile, Bisnis Indonesia daily reported that banks and pension funds had ordered around 80 percent of the bonds to be issued. The remainder comes from trust funds.

The paper quoted managing director of PT Indo Premier Securities Frederick Siahaan as saying that demand for the bonds had reached a value of around Rp 1.35 trillion, compared to Rp 1.2 trillion planned to be raised by Medco.(*)