Aker Energy signs bond deal with AFC

Aker Energy AS (“Aker Energy”) has entered into an agreement to issue USD 100 million of convertible subordinated bonds to Africa Finance Corporation (“AFC”). AFC also intends to take part in future capital market activities.

“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.

Aker Energy has issued subordinated convertible bonds to AFC of USD 100 million. The bonds have a coupon of 5.5 per cent 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 cent 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.

As part of the agreement, AFC has received equity warrants with the right to subscribe shares in Aker Energy in future equity offerings by the company of up to USD 50-100 million. AFC also intends to take part in other capital market activities initiated by Aker Energy in the future.

“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.

AFC is a multilateral finance development institution investing primarily in companies and infrastructure projects operating in Africa, with an equity capital base of USD 1 billion. The institution was formed in 2007 and has more than 20 African member countries, including Ghana.

Arctic Securities AS acts as sole manager of the transaction.

 

Source: Aker Energy

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