JAKARTA (TheInsiderStories) – Oil and gas firm, PT Medco Energi Internasional Tbk (IDX: MEDC) plans to speeding up an early repayments US$2.7 trillion (US$182.43 million) it bonds that will mature in 2021. To run the plans, the issuer will hold a bondholders meeting on Oct. 26 – 27.
The company owned by Indonesian tycoon, Arifin Panigoro, reported the bonds was issued in 2016, 2017 and 2018. Earlier, the issuer has announced prepares Rp3.24 trillion for the buyback program.
The issuer has issued global bond worth of $650 million through its Singapore-based’ subsidiary, Medco Bell Pte. Ltd. According to president director, Hilmi Panigoro, the issuer aimed to reduce the debt and to strengthen the capital structure.
The five series has potential to repay by MedcoEnergi‘ Series A of the bond issued in 2017 which has an interest rate of 10.3 percent and mature on March 28, 2021 with values of Rp415 billion. Then, Series A of bond issued in 2018 worth of Rp282.5 billion with an interest rate of 8.75 percent will due on March 29, 2021.
Others are Series B of bond issued in 2016 with an interest rate of 11.3 percent and will matures on July 15, 2021 with total amount of Rp923 billion. Next, Series A issued in 2018 worth of Rp1.15 trillion with an interest of 10 percent and will mature on Sept. 28, 2021.
MedcoEnergi also intends to repay part of Series B issued in 2016 with an interest of 11.3 percent and will mature on Sept. 30, 2021. The bonds have values Rp 701 billion. Beside early repayment, the producer also have preparing to a limited public offering of their shares with total amount $150 million in the third quarter of 2020.
The company has obtained the approval on June 25, 2020. While, the effective statement from the Financial Services Authority is expected to be pocketed on August 12.
In addition, MedcoEnergi also plans to sell up to 7.5 billion new shares of enlarged and paid up capital of the issuer. The proceeds will be used for the working capital of the company or its subsidiaries.
“Every shareholder who does not exercise his right to subscribe new shares in the Preemptive Rights will be diluted to a maximum of 29.5 percent,” said the management.
This year, MedcoEnergi plans to finalizes the Bualuang Phase 4B development in Thailand. Its unit PT Medco Power Indonesia also has collaborated with the Japanese firm, Kansai Electric Power Co., to produce a reliable gas-fired power plant and reliable operation and maintenance services.
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