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Jakarta Post

Medco Energi to offer Rp 1.5t in bonds to refinance debt

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Mon, February 3, 2020   /   06:06 pm
Medco Energi to offer Rp 1.5t in bonds to refinance debt Bualuang oil field operated by Medco Energi Internasional in Thailand. (Handout/Medco Energi Internasional)

Privately-owned oil and gas company PT Medco Energi Internasional is set to offer rupiah-denominated debt papers following a recent global bonds issuance in a bid to refinance its debts that are due in the next two years.

The company will issue Rp 1.5 trillion (US$ 110.15 million) in bonds in its third round of shelf-registration bonds.

The rupiah-denominated bonds are set to be offered in two series, namely series A, which amounts to Rp 908.7 billion with a coupon of 8.9 percent per year that will be due in three years, and series B, worth Rp 476.15 billion with an annual coupon of 9.3 percent and a tenure of five years.

“The public offering period for the bonds will run from Feb. 12 to 13 and will be listed on the Indonesia Stock Exchange [IDX] on Feb. 19,” the company said in an announcement posted on the IDX website on Friday.

The proceeds of the bond issuance will be used to refinance some of its debt owed to state-owned Bank Mandiri, which will be due on Dec. 21, 2021.

The company also issued $650 million worth of US dollar-denominated bonds through its subsidiary, Singapore-based Medco Bell Pte Ltd, on Jan. 16 on the Singapore Stock Exchange (SGX).

The bonds, scheduled to be due on Jan. 30, 2027, offered a 6.38-percent annual coupon. Medco Bell will transfer the proceeds of the bonds to Medco Energi to be used to refinance its previously issued bonds that will be due in 2021 and 2022.

The company received early commitments from several Singapore-based financial institutions for the bonds, such as DBS Bank Ltd, Mandiri Securities Pte Ltd, Standard Chartered Bank (Singapore) Limited, Morgan Stanley Asia (Singapore) Pte and Credit Suisse (Singapore) Limited, as well as Hong Kong-based Societe Generale.