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