Medco to issue Euro bonds of $150 million

Publicly listed oil company PT Medco Energi International Tbk said on Thursday it had planned to issue next month Euro bonds valued at US$150 million.

Medco?s chief commissioner John S. Karamoy said the proceeds of the bond issuance will be used for buying three oil blocks currently controlled by foreign investors who had planned to relocate their operation from Indonesia.

Karamoy declined to mention the foreign investors.

He said Medco?s debts had been reduced, which had allowed it to plan issuing the Euro bonds. By last September, the firm?s debts amounted to US$14.5 million, he told reporters.

New Links Energy International presently controls 85.44 percent of Medco?s shares, while the other shareholders include Credit Suisse First Boston with only 1.19 percent. The public currently controls only 5.38 percent of Medco?s shares.

Meanwhile, Thailand?s PTT Exploration and Production Public Co Ltd in January bought 40 percent shares in New Links, Medco?s holding company. (Leo)