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Medco to Issue Rp 1 Trillion Bonds

Medco's Oil & Gas

PT Medco Energi International Tbk, Indonesia’s largest publicly listed gas and oil company, plans to issue its second fixed rate bonds worth Rp1 trillion to finance its projects. "The bonds have been registered at the Indonesia Stock Exchange (BEI)," PT Medco Energi Internasional Tbk President Director Darmoyo Doyoatmojo said on Friday.

"The statement of bond listing and its supporting documents were submitted to the Capital Market Supervisory Board on May 5," he said. The bonds which have received an idAA rating from local rating agency Pefindo with stable outlook, will be offered at the face value and mature in 2012 and 2014.

Darmoyo said the company would use proceeds from the issuance of the bonds to strengthen working capital and investment in support of its businesses.
"Nearly 30 percent of the proceeds will be used to finance operations, while the rest will be used to finance projects to enable the company to continue its businesses," he said.

He said Medco Energi had appointed PT Bahana Securities, PT Danareksa Securities, PT Kresna Graha Sekurinda and PT Andalan Artha Advisindo as bond issue underwriters. In 2008, Medco Energi posted the record-high net profit of US$280.2 million.

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