Jakarta. Jakarta-listed oil and gas company Medco Energi Internasional raised $500 million from the sale of global bonds, the proceeds of which will be used to refinance debt and for working capital.
The seven-year bonds, with an annual coupon rate of 6.75 percent, were eight times oversubscribed.
"We are pleased with the issuance proceeds from the bonds, as it was due to the global credit rating agencies that upgraded the company's bonds rating, reflecting strong confidence from the investors," Medco Energi president director Hilmi Panigoro said in a statement on Thursday (25/01).
Global credit rating agency Moody's has upgraded the company's B2 rating to positive from stable, while Fitch Ratings and Standard and Poor's have confirmed the company's B rating with a stable outlook.
Medco Energi booked $168.08 million in net profit in the first nine months last year, a massive turnaround from a $147.7 million loss in the same period a year earlier. Revenue increased by 52.64 percent to $597.52 million.
Medco Energi, controlled by the Panigoro family, is an integrated energy company focused on oil and gas exploration and production, chemicals and coal mining. The company's exploration and production blocks are located on the islands of Sulawesi, Sumatra, Kalimantan and Java.
The company also has oil and gas assets overseas, including in the United States, Libya, Oman, Yemen, Tunisia and Papua New Guinea.