TIDMPPC
RNS Number : 4244T
President Energy PLC
24 November 2021
24 November 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
President's Argentine subsidiary issues oversubscribed Corporate
Bond in Argentina
Rated A- by Fitch affiliate with interest rate 1.24 per cent
p.a.
President Energy (AIM: PPC), an international energy company, is
pleased to announce the issue of a Corporate Bond by the Company's
Argentine subsidiary, President Petroleum S.A.
Highlights
-- President Petroleum S.A. has issued an oversubscribed
US$8,950,000 Corporate Dollar Denominated Bond which has been
successfully publicly placed with qualified investors in
Argentina
-- This is the first time that any member of the President Group has issued a Corporate Bond
-- The Bond has been rated A- local investment grade by the
Argentine affiliate of the respected worldwide credit rating agency
Fitch
-- Covenant lite with an interest rate of 1.24% p.a. and a term
of 2 years solely secured on 60% of the sales proceeds of oil from
the Company's Puesto Flores field, Río Negro Province,
Argentina
-- Proceeds to be mainly used for capital investment purposes in
Argentina as well as working capital
-- The Bond will list on the Bolsa y Mercados Argentinos
("BYMA"), the Main Argentine exchange will trade on the Mercado
Abierto Electrónico (MAE)
Corporate Bond
The Argentine subsidiary of the Company, President Petroleum
S.A., a dollar based business, has successfully issued and placed a
US$8,950,000 Dollar denominated Corporate Bond. This is the first
time that any member of the Group has issued a Corporate Bond.
The issue, which was oversubscribed nearly three times, was
successfully placed by a line-up of local institutions led by BACS
Banco de Crédito y Securitización S.A. and Banco Hipotecario S.A.
on behalf of the Company with the Bond carrying an interest rate of
1.24% p.a. and having a term of two years (with four quarterly
amortization payments during the second year). The covenant lite
Bond is solely secured on 60% of the sales proceeds from oil sales
of the Puesto Flores Concession, Río Negro Province, Argentina.
Production from all other Río Negro fields and the Puesto Guardian
field in Salta as well as all gas production in Argentina are not
subject to nor affected by this security.
Of particular note is that the Bond has given the credit rating
of A- local investment grade by the Argentine affiliate of the
worldwide credit rating agency Fitch, Fix SCR.
The proceeds from the Bond will be mainly used for capital
expenditures of the Argentine operations through the whole of next
year including the drilling and seismic operations at the long term
Puesto Guardian Concession as well as working capital.
The Bond is expected to list on BYMA and to trade on the Mercado
Abierto Electrónico (MAE)
Peter Levine, Chair, commented as follows :
"The issue of the Bond is a first for our Group. It is a matter
of taking the opportunity for low cost capital available to us on
attractive terms in the local Argentine market through our
dollar-based business, President Petroleum S.A. It provides
flexibility and allows us to take advantage of better terms and
prices.
"The fact that this covenant lite Bond issued with an interest
rate of 1.24% p.a. has received a local investment grade rating of
A- from Fix SCR, the affiliate of the world-renowned Fitch Group
credit rating agency, is reflective of the standing of President in
Argentina
"It is furthermore a clear message to equity investors as to the
strength of and value attributed to our Group
"The proceeds will be mainly used for capital expenditures in
Argentina as well as working capital supplementing our free cash
generation from existing operations as we move into an intensive
investment period to expand our oil production to take advantage of
higher prices and economies of scale in our production assets in
Salta Province
"In the meantime the various important strategic workstreams
continue in other parts of the Group including the forthcoming IPO
of Atome Energy and the Paraguay farm out of our significant
prospective exploration acreage to be concluded now within a matter
of a week
"Whilst it may seem to investors that many things are happening
in succession, President has been working away on all these
initiatives for a considerable period of time and they are in no
way happenstance. All is under control."
Contact:
President Energy PLC +44 (0) 207 016 7950
Nikita Levine, Investor Relations info@presidentpc.com
finnCap (Nominated Advisor and broker)
Christopher Raggett, Tim Harper +44 (0) 207 220 0500
Notes to Editors
President Energy is an oil and gas company listed on the AIM
market of the London Stock Exchange (PPC.L) primarily focused in
Argentina, with a diverse portfolio of operated onshore producing
and exploration assets.
The Company has operated interests in the Puesto Flores,
Estancia Vieja, Puesto Prado and Las Bases Concessions, and
Angostura exploration contract, all of which are situated in the
Río Negro Province in the Neuquén Basin of Argentina and in the
Puesto Guardian Concession, in the Noroeste Basin in NW Argentina.
Alongside this, President Energy has cash generative production
assets in Louisiana, USA and further significant exploration and
development opportunities through its acreage in Paraguay and
Argentina.
Atome Energy is the green hydrogen and ammonia subsidiary of
President Energy PLC with intended operations in the Americas and
Europe and a targeted separate listing on the London Stock Exchange
market later in 2021.
With a strong strategic and institutional base of support,
including the international commodity trader and logistics company
Trafigura, an in-country management team as well as the Chairman
whose interests as the largest shareholder are aligned to those of
its shareholders, President Energy gives UK investors access to an
energy growth story combined with world class standards of
corporate governance, environmental and social responsibility.
This announcement contains inside information for the purposes
of article 7 of Regulation 596/2014
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