Medco to issue convertible bonds worth up to $200 million

Indonesia-listed energy firm PT Medco Energi Internasional Tbk plans to issue convertible bonds worth between US$150 million and $200 million to partly finance the company?s expansion plan for the next three years.

The company?s finance director Cyril Noerhadi said in Jakarta on Thursday that the issuance of the bonds would depend on the condition on the country?s capital market.

The company has appointed Deutsche Bank and Credit Suisse as arrangers. The bonds have a tenor of between 3.5 and 7 years.

He said the company had allocated about US$1.4 billion in capital expenditure (capex) for the next three years. About $240 million of the funds will be used to develop Block A in Aceh and a larger part of it for the development of Donggi-Senoro LNG project, he said, without citing figures for the LNG project.

This year, Medco has allocated around $200-250 million of capex. Medco has several oil, gas projects include Donggi-Senoro in Central Sulawesi, Sarulla geothermal project in South Sumatra and in oil development in Libiya. (*)