Jakarta, May 22nd 2018 – PT Medco Power Indonesia, (“MPI” or “the Company” ), a subsidiary of PT Medco Energi International Tbk engaged in power business, is pleased to announce its intention to issue a bond and a sharia compliant bond (“Sukuk Wakalah” ) at an Investor Gathering and Due Diligence Meeting held on May 22nd 2018 at Fairmont Hotel Jakarta.
The Company plans to issue a bond and Sukuk Wakalah in Indonesian Rupiah with an aggregate amount up to Rp. 1,200,000,000,000.- (one trillion and two hundred billion Rupiah) which will be divided into three series with tenor in 3 (three), 5 (five), and 7 (seven) years. As part of the issuing process MPI has secured a Single A credit rating (id ‘A’) for the company, the bond and sukuk wakalah issued by Pemeringkat Efek Indonesia (Pefindo). Eka Satria, the President Director of MPI explained that the issue is part of Company efforts to optimize cash management, subsidiary loan refinancing, funding for capital expenditure and new developments of future projects, including a 275 MW Riau CCPP and a 110 MW Ijen geothermal power plant.
Within the increase of the awareness towards the sharia principal, Sukuk Wakalah MPI I is expected to be an attractive alternative for investors considering this sukuk wakalah is the first sharia instrument that is issued by Indonesian Corporation based on the sharia principle.