Apexindo to pay off debt via bond issue

Apexindo to pay off debt via bond issue

JAKARTA: Publicly listed drilling company PT Apexindo will
offer Rp 750 billion (US$81.52 million) in bonds next month to
pay its debts to several creditors.

The five-year bonds would consist of Rp 600 billion in
conventional bonds with a yield of between 11.75 percent and 12.5
percent annually, and Rp 150 billion in sharia bonds, said
president director Hertriono Kartowisastro here on Thursday.

Sharia bonds follow Islamic guidelines for profit sharing.

Proceeds of the rupiah-denominated bonds issue will be used to
pay off a $30 million bridging loan the company owes to Standard
Chartered Bank and $45.4 million of syndicated loans to Fortis
Bank N.V.

The rest of the proceeds will be used to pay part of its debts
to Medco Energi Finance Overseas B.V., a subsidiary of Apexindo's
majority shareholder PT Medco Energi International. -- JP