Suriname NOC Staatsolie Maatschappij Suriname raised USD 515.8 million with a new bond issue on Sunday, eclipsing its target, the company said on Monday.
Proceeds from the bond issue will be used by Staatsolie to co-fund its participation of up to 20% in the development of the GranMorgu offshore oilfield in Block 58.
In October 2024, TotalEnergies unveiled a USD 10.5-billion FID on the GranMorgu project, which will develop the Sapakara and Krabdagu oil discoveries, with first oil expected in 2028.
The overall investment for this project is estimated at USD 12.2 billion, of which Staatsolie’s contribution is USD 2.4 billion. Staatsolie has also allocated its own cash reserves for the investment in the GranMorgu project.
Read our latest interview with Staatsolie CEO Annand Jagesar here.
The discoveries are estimated to contain more than 750 million barrels. The project partners are targeting production of 200,000 bopd via an FPSO, a game-changing volume more than 10 times Suriname’s current output. 25 years of output is forecast.
In total, the Staatsolie Bond 2025-2033 raised USD 468.7 million and EUR 43.5 million (equivalent to USD 47.1 million). In US dollars, the total amounts to USD 515.8 million, exceeding the target of USD 304.1 million by USD 211.7 million. Staatsolie awarded all of the subscriptions as part of its right under the prospectus.
Staatsolie initially expected to raise about USD 109 million in “new” money, which eventually totalled USD 320.8 million. “New” money refers to the total amount received above the USD 195 million of the Staatsolie Bond 2020-2025 and 2020-2027.
Part of the proceeds will also be used to refinance the Staatsolie Bond 2020-2025 and 2020-2027 worth USD 195 million. Holders of these bonds had the opportunity to redeem them to participate in the new issue. More than 70% of the Staatsolie Bond 2020-2025 and 2020-2027 has been exchanged. Some bondholders, accounting for USD 55 million, opted to continue with their existing bonds.
De Surinaamsche Bank is the arranger of the 2025-2033 Staatsolie bond. The bond has a maturity of eight years. The interest rate is 7.75% for the US dollar bond and 7.25% for the euro bond. Interest will be paid twice a year, with the first payment scheduled for 23 September 23 of this year. The bonds are tradable on the Dutch Caribbean Securities Exchange and the Suriname Stock Exchange.
“By investing the proceeds from the new bond in the GranMorgu project, Staatsolie is taking a big step toward realising its vision ‘Energising a bright future for Suriname’,” the company said. “The fact that ample more has been raised proves that small and large investors have faith in Staatsolie, the GranMorgu project and a brighter future for Suriname.”
Source: theenergyyear.com