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3 November 2011
Afren launches general syndication of USD 200m loan with fees of 150bps-75bps


DebtWire (UK)

Afren launched its USD 200m 18-month acquisition loan into general syndication today (3November), according to a banking source close to the deal. The facility offers four tickets ranging from USD 50m down to USD 10m, with fees of 150bps to 75bps.

Co-ordinators BNP Paribas and VTB Capital will hold an investor presentation in London on 9 November.

Banks can join as a mandated lead arranger for a USD 50m commitment and a 150bps fee; senior arranger for USD 30m and 125bps; arranger for USD 20m and 100bps; and manager for USD 10m and 75bps. The facility pays a 900bps margin, the source added.

The loan will be repaid in quarterly instalments after a six-month grace period.

Afren also priced a USD 450m 2016 bond at 11.5% in January this year, according a stock exchange announcement.

The London-listed oil and gas company has more than 30 assets in 12 African countries and is now buying stakes in the Ain Sifni and Barda Rash fields in Iraq from the Kurdistan regional government and Komet Group. The deal will cost USD 588m and will be partly financed via a GBP 113m (USD 184.5m) share placement completed at the end of July, according to company statements.

The bulk of Afren's operations are located in Nigeria.
Corporate Communications VTB Capital