President issues first corporate bond
London-listed President Energy said on November 24 it had issued its first corporate bond worth $8.95mn to help fund capital expenditure at its operations next year.
The bond was rated A by Fitch and was publicly placed with qualified investors in Argentina. It was oversubscribed almost three times, and will be listed at Argentina's main exchange Bolsa y Mercados Argentinos.
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The bond is covenant lite with an interest rate of 1.24% annually and a term of two years. It is secured solely on 60% of proceeds from oil sales at President's Puesto Glores field in Argentina's Rio Negro province.
By placing the bond, President's chair Peter Levine said the company was "taking the opportunity for low cost capital available to us on attractive terms in the local Argentine market."
"It provides flexibility and allows us to take advantage of better terms and prices," he said.
The work that the proceeds will fund includes drilling and seismic operations at the Puesto Guardian concession.