BRI helps Medco finance debt settlement

JAKARTA: PT Medco Energi Internasional Tbk continues its efforts in generating fund to settle debts by withdrawing credit as much as US$140 million from PT Bank Rakyat Indonesia Tbk.The credit agreement has been signed by BRI Director Sulaiman Arief Arianto, Medco Energi President Director Lukman Mahfoedz and Finance Director Syamsurizal Munaf.The fund can be tapped in 24 months after the signing and the payment has 5 years in tenure. However, the interest rate is not mentioned specifically.The loan is one funding strategy of the private energy company, said Finance Director Syamsurizal Munaf.The availability of loan facility will enable Medco Energi meeting its funding requirement at anytime, either to refinance loan or working capital, he said at the signing ceremony yesterday.To get loan to settle debts added to plan of issuing US$150 million bonds.The company plans to use US$30 million of the proceeds for debt refinancing.Medco this year must pay total US$20.6 million debt maturing on December 23. Next year, it must settle US$7.4 million on February 3 and IDR513.5 billion on June 17.The credit facility, according to Medco Energi President Lukman Mahfoedz, reflects the confidence of Indonesian banks on the company's commitment to develop its business in oil, gas and other energy resources.For Medco, BRI is the second creditor for the company this year, after PT Bank DKI's commitment was achieved in May for US$25 million loan facility.Yesterday, Medco's stock strengthened by IDR50 to IDR2,275 after posting 3-day drops at the stock market. At the same time, BRI stock also rose IDR100 to IDR6,350. (T04/NOM)