West African energy development company Gasol has announced that it has executed a multi-tranche, unsecured bond instrument
The bond will have an interest rate of 10 per cent per annum and a maturity of three years. Interest will be payable twice yearly.
Gasol revealed that the first bond tranche of US$20mn has been placed with institutional investors. The bond has a maximum issue size of US$100mn and any subsequent tranches will be subject to investor appetite.
A company statement said, “The net proceeds from the initial tranche of the bond will be used to support initial development work and scoping studies for the development of the Company's Liquefied Natural Gas (LNG) Import Project, which is to be situated in Benin, West Africa.
“The intention will be to supply gas into the 678km West African Gas Pipeline for delivery to customers in Benin, Togo and Ghana, where significant gas shortages exist.”
Gasol chief operating officer Alan Buxton commented, “It is an endorsement of the company’s business strategy that we are able to raise this level of funds in a tight credit market and receive this support from the institutional investment community. Gasol is well-funded and positioned to move ahead with its outlined strategy.”