Medco to raise Rp 1.3t from fifth bond issue

By Romel S. Gurky

IDX-listed energy company PT Medco Energi Internasional Tbk announced Monday it was issuing bonds worth Rp 1.3 trillion to help repay debts and finance acquisition plans.

The company said in a statement that this is the fifth bond issue of the planned total Rp 5 trillion bonds program which started last year. The current bonds issue comprises of three series of bonds: A series worth Rp 248.5 billion with coupon rate of 8.75 percent and maturity period of 370 days; B series worth Rp 129.5 billion with coupon of 10.8 percent and maturity period of three years; and C series worth Rp 704.5 billion with coupon of 11.3 percent and maturity period of five years. The three series of bonds are guaranteed by the company based on full-commitment.

Meanwhile, the company is also issuing another Rp 217.5 billion guaranteed based on best effort commitment, Medco said.

Medco said that about 60 percent of the proceeds will be used to repay bonds maturing in December 2017 and March 2018, while the remaining to finance working capital including for future asset acquisition.

Editing by Reiner Simanjuntak