Edition:
India

Aker Energy To Issue Convertible Bonds Worth USD 100 Mln


Monday, 8 Jul 2019 

July 8 (Reuters) - Aker ASA ::AKER ENERGY ISSUES CONVERTIBLE BONDS TO AFRICA FINANCE CORPORATION.HAS ENTERED INTO AN AGREEMENT TO ISSUE USD 100 MILLION OF CONVERTIBLE SUBORDINATED BONDS TO AFRICA FINANCE CORPORATION.AFC ALSO INTENDS TO TAKE PART IN FUTURE CAPITAL MARKET ACTIVITIES.BONDS HAVE A MATURITY OF FIVE YEARS, WITH AN OPTION TO EXTEND WITH ANOTHER THREE YEARS.BONDS HAVE A COUPON OF 5.5 PER CENT PER YEAR AND WILL BE CONVERTED TO EQUITY IN EVENT OF AN INITIAL PUBLIC OFFERING AKER ENERGY, AT AN AGREED DISCOUNT TO AN IPO OFFERING PRICE OF 1.85 PER CENT PER YEAR.PROCEEDS FROM BONDS WILL BE PART OF FINANCING FOR DEVELOPMENT OF DEEPWATER TANO CAPE THREE POINTS ("DWT/CTP") BLOCK OFFSHORE GHANA.AS PART OF AGREEMENT, AFC HAS RECEIVED EQUITY WARRANTS WITH RIGHT TO SUBSCRIBE SHARES IN AKER ENERGY IN FUTURE EQUITY OFFERINGS BY COMPANY OF UP TO USD 50-100 MILLION.