Medco subsidiary provides intercompany loans
Thursday, August 31 2017 - 01:19 AM WIB
Petromindo|Khalsa
IDX-listed energy company PT Medco Energi Internasional Tbk said that its wholly-owned Singapore-registered subsidiary Medco Strait Services Pte Ltd had on August 17 and 22 issued senior debt notes totaling US$400 million with interest rate of 8.5 percent and maturing in 2022.
Medco said in a statement on Wednesday that Medeo then used the proceeds to provide intercompany loans for the company and another subsidiary Medco Natuna Pte Ltd (MNPL), respectively worth $146.71 million and $220 million.
Medco said that the loans will be used to repay maturing debt facilities including the 2016 Natuna facility, 2015 MTN program, and 2013 phase I and II bonds.
Medco in November of last year, acquired ConocoPhillips Indonesia Inc Ltd (CIIL) and ConocoPhillips Singapore Operations Pte. Ltd. (CSOP), both of which are subsidiaries of ConocoPhillips (COP).
CIIL, which is the operator of the South Natuna Sea Block B PSC with a 40 percent interest, is also the operator of the West Natuna Transportation System (WNTS). CSOP operates an onshore receiving facility in Singapore.
Editing by Reiner Simanjuntak