Continental Focus, International Reach

Aker Signs Bond Deal with AFC

Wednesday, July 10, 2019

Aker Energy signed a $100 million convertible bond deal with Africa Finance Corporation (AFC), a multilateral institution specializing in infrastructure financing in Africa. According to the firm, these bonds have a coupon of 5.5% per annum and will be converted into shares in the event of Aker Energy’s IPO, with a discount that will be agreed upon against a price.

Bond proceeds will be invested in financing the development of the Deepwater Tano Cape Three Points Block (DWT / CTP), a block located off Ghana and controlled by Aker Energy whose estimates say thr block contains more than one billion recoverable barrels. Aker will need a little more than a $1 billion to start the initial phase of production of the project.

“We are very pleased to have AFC as an investor in Aker Energy. We look forward to further strengthening our collaboration in the coming years,” said Jan Arve Haugan, CEO of Aker Energy.