Suriname state oil company Staatsolie Maatschappij Suriname N.V. has issued a US$195 million bond in Suriname and Curaçao. This bond issuance, executed on March 23, is internationally listed on the Dutch Caribbean Securities Exchange (DCSX). De Surinaamsche Bank N.V. is the arranger.
Staatsolie said the listing of the 2020-2025/2027 bond on the DCSX is its first step on the international capital market. The international listing offers investors (in Suriname and in Curaçao) a more tradable bond than the previous one. Staatsolie will also have access to international investors in Curaçao who are interested in high-yielding regional investments.
With this international bond issuance US$195,067,000 was raised, which is more than US$45 million higher than the aimed amount of US$150 million. For Staatsolie, this is a sign that Surinamese, and now also international investors, have confidence in the company.
Approximately 85% of the current bondholders re-invested again in this third bond. The aim of the third bond issue was:
- The renewal of the Staatsolie Bond 2015-2020.
- The implementation of projects that are part of the investment program 2020-2027, including the investment in the Pikin Saramacca gold mine of IAMGOLD Rosebel Gold Mines.
With this listing (issuance of the international bond), Staatsolie anticipates the recent and future developments in the offshore sector.
Several discoveries are expected after the recent oil discovery in Block 58, Maka Central-1. Staatsolie will need capital if the company is to take its contractually determined interest in the finds if they are developed and produced.
Staatsolie said it is in an opportunity rich position and will need access to international capital to make future investments in offshore oil production. To this end, various financing options will be further investigated, including a share issue and international bonds listed in, for example, London or New York. The US$ 195 million international bond listed on DCSX is one of the ways to introduce Staatsolie to the international capital market.
Denominations of US$100.00 and US$30,000.00 have been issued for the Staatsolie Bond 2020-2025/2027. The maturities are 5.5 years at 7% interest or 7 years at 7.5% interest per year. The interest payment is semi-annually, in March and September. The first interest payment is on 23 September 2020.
Staatsolie successfully issued bonds in 2010 and 2015 and has always met its interest and repayment obligations. The interest payments and repayment of the principal of the new bonds are guaranteed.
The state oil company extended thanks to investors for their confidence, which it said will contribute to the further growth of the firm.