Aker Energy Ghana, a subsidiary of Norwegian-based oil exploration and production firm Aker Energy AS, has entered into an agreement to issue $100 million of convertible subordinated bonds to Africa Finance Corporation (AFC).
AFC also intends to take part in future capital market activities, said a press release.
Aker Energy has issued subordinated convertible bonds to AFC of $100 million. The bonds have a coupon of 5.5% per year and will be converted to equity in the event of an Initial Public Offering (IPO) of Aker Energy, at an agreed discount to an IPO offering price of 1.85% per year.
The bonds have a maturity of five years, with an option to extend with another three years. The proceeds from the bonds will be part of the financing for the development of the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana.
Aker Energy Ghana's partners are Lukoil Overseas Ghana Tano Limited (38%), the Ghana National Petroleum Corporation (GNPC) (10%) and Fueltrade Limited (2%).
“We are very pleased to get AFC on board as investors in Aker Energy. We look forward to further strengthening our collaboration in the years to come, as we embark on development projects offshore Ghana,” says Jan Arve Haugan, CEO of Aker Energy.
“Partnerships with financially and technically strong sponsors, is a key component of our Natural Resources strategic focus. We are therefore delighted to be announcing this transaction with Aker Energy, which, through the Aker group, has an outstanding track record of executing complex offshore projects like the DWT/CTP block in Ghana,” Samaila Zubairu, President and CEO of AFC commented.