KrisEnergy Ltd. has successfully priced an aggregate amount of S$130 million 6.25% Notes due 2017 under the S$500 million Multicurrency Medium Term Notes Programme (the MTN Programme) established on 26 May 2014. The Notes will bear interest at a fixed rate of 6.25% payable semi-annually in arrears.
The Notes, which drew strong demand from private banking accounts and institutional investors, are expected to be issued on 9 June 2014.
Keith Cameron, Chief Executive Officer, commented: “This is our first Singapore dollar issue underour newly established MTN Programme and we are extremely pleased with the investor support we received, which is a testament to the robustness of our portfolio and business strategy and to our conservative financing approach. With the initial deal size of S$100 million subscribed almost eight times, we felt comfortable to increase the issuance to S$130 million. The net proceeds will be used for the development of two oil projects in the Gulf of Thailand, which are both scheduled to start production in 2015, and for acquisitions in our continued push to grow the Company’s portfolio.”
Standard Chartered Bank and The Hongkong and Shanghai Banking Corporation Limited (“HSBC”) were appointed as Joint Arrangers of the MTN Programme. Standard Chartered Bank was appointed Sole Active Bookrunner for the issuance and HSBC was appointed Passive Bookrunner.
Rob Mason, Global Co-Head of High Yield Debt Capital Markets at Standard Chartered Bank, said: “This transaction was landmark in that KrisEnergy is the only oil and gas exploration and production company to access the Singapore dollar market in at least the last five years, if not the first. The unique credit story, combined with highly regarded shareholders and management, attracted a large and diverse order book across private banks and high quality institutional investors. The bond offering diversifies the Company’s funding base and positions it very well for the next phase of their development.”
Press Release, June 05, 2014