Rex International's bond issue fully subscribed; used to fund acquisition of Norway oilfield

REX International on Thursday said the senior secured bond, worth 500 million Norwegian krones (S$78.9 million), of its 90 per cent-owned subsidiary Lime Petroleum has been fully subscribed.

The 2.5-year senior secured bond, with a maturity date of Jan 9, 2024, is a condition precedent for Lime Petroleum's acquisition of Brage field in Norway, the group said in an exchange filing on Thursday.

The group expects the bond to be listed on the Oslo Børs within six months, with a coupon rate of three months Norwegian Interbank Offered Rate plus 8.25 per cent. The settlement date for the bonds is expected to be on July 9, 2021.

It added that it has appointed financial adviser ABG Sundal Collier as the manager of the bond issue.

On June 15, Lime Petroleum said it has entered into a conditional sale and purchase agreement to acquire 33.8 per cent interest in the oil, gas and natural gas liquids producing Brage Field from Repsol Norge. It also said it would buy the five licences on the Norwegian Continental Shelf, which the Brage field straddles, for a post-tax price of US$42.6 million.

Lime Petroleum's chief executive Lars Huber said: "The completion of the bond issue is another step that will pave the way for Lime Petroleum to transition from pure play exploration, to a full cycle exploration and production company on the Norwegian Continental Shelf."

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Shares of Rex International were trading at 18.7 Singapore cents as at 9.02am on Thursday, up 0.2 cent or 1.1 per cent.