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09 Sep 2019 | 09:12

Independent Oil and Gas issues EUR100m 5-year bond to fund gas development project in UK Southern North Sea

Independent Oil and Gas said it had issued a EUR100m 5-year senior secured bond to fund its gas development project in the UK Southern North Sea, and meet financing costs.

The bond was issued with a quarterly interest rate of 9.5% a year over the three month Euribor rate and would be callable after 3 years with an initial call premium of 50% of the coupon, which would decline by 10% every six months thereafter, the company said.

The settlement date of the bond would be 20 Sep 2019, giving an expected maturity of 20 September 2024.

The company had the option to issue additional amounts up to a maximum aggregate of EUR30m, which would carry identical terms to the initial EUR100m issue but may be issued at different prices, Independent Oil and Gas said. 'This bond is a very significant step forward for IOG, fulfilling the key condition to Farm-out completion. Raising EUR100 million in debt finance demonstrates the robustness of our Core Project in the UK Southern North Sea, for which we will be fully funded at farm-out completion. Farm-out completion will trigger Phase 1 FID which will be a major milestone for IOG, signalling the start of the project execution phase,' said Andrew Hockey, CEO of IOG.

At 9:12am: (LON:IOG) Independent Oil Gas PLC share price was +1.38p at 19.5p

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