Gasol plc, the West African energy development company, ha announced that it has executed a multi-tranche, Euro Medium Term Note instrument (the Note).
The Note has an interest rate of 9% per annum and a maturity of just over four years in December 2017. Interest is payable twice yearly.
The board is also pleased to announce that the first US$ 30 million tranche of the Note has been placed with institutional investors. The Note has a maximum issue size of US$ 100 million and any subsequent tranches will be subject to investor approval.
Two LNG projects
The net proceeds from the initial tranche of the Note will be used to support the continued development work on both of the company's liquefied natural gas (LNG) projects. The West African LNG Import Project is to be situated in Benin, West Africa, with the intention to supply gas into the 678 km West African Gas Pipeline for delivery to customers in Benin, Togo and Ghana, where significant gas shortages currently exist.
The second LNG project, announced last week, is Gasol's participation in Electrogas Malta alongside SOCAR Trading SA, GEM Holdings and Siemens Projects Ventures, where Electrogas has been selected as the preferred bidder for a LNG-to-power project in Malta.
Alan Buxton, Chief Operating Officer at Gasol, said: "We are very pleased to have been able to successfully issue a further debt instrument in 2013. The board welcomes the continued endorsement of the company's business strategy from the institutional investment community. Gasol is now well positioned to move ahead with its outlined strategy."
Adapted from press release by Ted Monroe
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/28102013/gasol_supports_lng-developments_with_us_30-million_note/