May 4, 2010

Medco aims to issue US$350 mio bond

Oil and gas producer PT Medco Energi Internasional Tbk (MEDC) aims to issue US$350 million bond in July or August this year.
A source familiar with the matter said the proceed will be used by Medco, controlled by Panigoro family, to refinance US$209 million of debt maturing this year and supporting an investment.
Some foreign houses such as Credit Suisse, DBS Securities, and Deutsche Bank are interested to arrange the bond issue.
Medco's Finance Director Cyril Noerhadi previously said the company has planned to sell dollar denominated bond or medium term notes at a minimum size of US$200 million in the second half this year.
The company needs up to US$1.7 billion of financing to develop major projects like Sarulla, Libya, and the other projects until 2015.
As of March 2010, Medco posted US$186.02 million in revenue, a 37.88% growth compared to the same period last year of US$134.91 million.
Operating profit rose 89.19% to US$45.67 million in Q1 2010 from a year before of US$24.14 million. Net profit increased 17.09% from US$8.84 million in Q1 2010 from US$7.55 million in Q1 2009.
Medco's total debt reached US$516.95 million as of March 2010 from a year before of US$427.29 million. Around US$147.25 million will mature in short term.

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