Medco names Bahana as bond underwriter

An oil and gas company that is controlled by Panigoro family PT Medco Energi Internasional Tbk (MEDC) has mandated PT Bahana Securities as a lead underwriter of proposed US$150 million bond issuance.

“Yes, we have officially been appointed as the lead underwriter for the Medco’s bond,” President Director Eko Yuliantoro at Bahana Securities told Insider Stories today.

According to him, the US-denominated bond will be issued in Indonesia under a new regulation of series of issuance.

The Medco’s third bond has also been asigned AA- by local rating agency PT Pemeringkat Efek Indonesia.

“About 60% of the issuance will be used by Medco to refinance its existing debt and the remaining is intended for general purpose,” the source said.
At end of March 2011, Medco managed due date debts of US$169.42 million.

Medco Corporate Secretary Cisca Alimin confirmed that the company will issue US$150 million bond. However, she declined to further explanin the bond usage.

Disclosure: No position at the stock mentioned above.