JAKARTA. PT Medco Energi Internasional Tbk. issue global bonds with a total value of US$ 650 million in order to obtain funds to pay its debts.
The bonds have an interest rate of 6.375% per year with a seven-year tenor.
Based on the prospectus published in Bisnis Indonesia on Monday (3/2), the global bonds have been absorbed by six initial buyers, Credit Suisse (Singapore) Ltd., DBS Bank Ltd., and Morgan Stanley Asia (Singapore) Pte., Societe Generale, Standard Chartered Bank (Singapore) Limited, and Mandiri Securities Pte. Ltd. The six parties signed a sale and purchase agreement on 16 January 2020.
The funds generated from the transaction (US$ 621 million) will be used to pay debts, writes PT Medco Energi Internasional Tbk in its prospectus on Monday (3/2).
At least US$ 400 million will be used for payment and cancellation of the company's bonds that will mature in 2022, which have an interest rate of 8.5%. Around US$ 221.6 million was used to pay for the company's bonds that will mature in 2021. The bonds were issued in 2016 - 2018 with a coupon range of 8.75% -11.3%. (AM/AR)