First, the Sustainable Bonds II phase I 2016 series B worth IDR 923 billion. This instrument is supposed to mature on July 15, 2021. However, MEDC is moving it forward to November 12, 2020.
The company owned by the Panigoro Family will also make forward repayments for the 2017 Series A Sustainable Bonds II Phase IV to November 12, 2020, from March 28, 2021. The value of these bonds is IDR 415 billion.
President Director of MEDC Hilmi Panigoro said, Medco is indeed committed to reducing debt levels. Moreover, MEDC has excess liquidity.”We have cash equivalentto US $ 695 million,” Hilmi told Kontan.co.id, Thursday (8/10).
However, MEDC needs to seek bondholder approval before paying off the bonds early.The General Meeting of Bondholders (RUPO) to discuss this matter will be held on 26 October.
This early payment is not the first time. Entering the second semester of this year, MEDChas paid off its obligations several times earlier.
One of them is the early payment of the remaining seniornotes amountingto US $ 67.59 billion. Through Medco Strait Services, the payment was made on 14 August.
Along with a series of initial repayments that have been made since the beginning of the year,MEDC’sgross debt fell8% on an annual basis to US $ 2.7 billion at the end of the first semester. Meanwhile, the company’snet debt decreased5 percent annually to US $ 2.07 billion.
With this position,MEDC’snet debt to EBITDA perfirst semester of this year is at a level of 3.7 times.” We will keep our leverage leveltouching the level 3 times,” added Hilmi.