Medco to issue US$200m bonds

Medco to issue US$200m bonds

JAKARTA: Medco Energi Internasional said on Monday it plans to issue US$200 million worth of five-year bonds in May to fund the acquisition of oil fields in Indonesia.

Medco Chief Executive Hilmi Panigoro said the company will issue another $100 million in five-year bonds to refinance a note coming due in March 2007.

"We plan to issue a total $300 billion in Yankee bond in May to refinance and acquire more oil assets," he told reporters.

The oil company wants to refinance its bonds due 2007 as these carry covenants that put heavy restrictions on debt levels at its units, said a source close to the deal. The new bonds will have less heavy restrictions, the source added.

Medco will launch its international roadshow Monday next week in Singapore, before moving to Hong Kong, London and New York, Hilmi said. -- Dow Jones