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).
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)
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