TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Medco Power Indonesia lists bonds, sukuk on IDX

PT Medco Power Indonesia (MPI), a subsidiary of oil and gas giant Medco Energi International, listed conventional bonds (MPI I bonds) and sukuk wakalah (MPI I Sharia-compliant bonds) on the Indonesia Stock Exchange (IDX) on Thursday, eyeing to collect Rp 1.2 trillion ($83.2 million).

Stefanno Reinard Sulaiman (The Jakarta Post)
Jakarta
Thu, July 5, 2018

Share This Article

Change Size

Medco Power Indonesia lists bonds, sukuk on IDX A woman walks through the Medco Energi office in Jakarta. (Kontan/Cheppy A. Muchlis)

P

T Medco Power Indonesia (MPI), a subsidiary of oil and gas giant Medco Energi International, listed conventional bonds (MPI I bonds) and sukuk wakalah (MPI I sharia-compliant bonds) on the Indonesia Stock Exchange (IDX) on Thursday, eyeing to collect Rp 1.2 trillion ($83.2 million).

MPI president director Eka Satria said the turnover of debt paper issuance would be used to optimize cash management and refinance subsidiary loans as well as to fund capital expenditures and future projects.

“As the first bond [and sukuk] issuing company, the high interest [of investors] toward the bond and sukuk wakalah reflects investors’ high trust in the company,” he said, commenting on the sukuk that was oversubscribed during the book building period.

However, MPI finance director Susie Syams explained that sharia-compliant instruments were nothing new for the company because the company’s existing loans to the subsidiaries had also been based on sharia loan instruments.

He explained there was high demand for sukuk because the number of companies that issued such instruments was limited.

The firm is constructing a 275-megawatt (MW) steam and gas power plant in Riau and a 110-MW geothermal power plant in Ijen, East Java.

Eka explained that the company would only seek opportunities to develop clean-energy power plants, such as gas-based, geothermal and other renewable energy.  (bbn)

 

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.