{"id":5939,"date":"2017-05-15T14:05:18","date_gmt":"2017-05-15T14:05:18","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=5939"},"modified":"2017-05-15T14:05:18","modified_gmt":"2017-05-15T14:05:18","slug":"swala-oil-and-gas-secures-130-million-to-finance-tanzania-operations","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-and-gas-secures-130-million-to-finance-tanzania-operations\/","title":{"rendered":"Swala Oil and Gas Secures $130 million To Finance Tanzania Operations"},"content":{"rendered":"

Swala Oil & Gas (Tanzania) PLC has announced that it has entered into a letter of intent with a global institutional investor Exotix Partners LLP for the placement of junior secured 5-year corporate bonds covering the first investment tranche approximately US$130 million in debt financing to fund this material transaction.<\/p>\n

According to Swala Oil and Gas the transaction shall be partly funded through the issuance of preference shares in the Company, partly through the assumption of pre-existing corporate debt obligations and partly in cash.<\/p>\n

In agreement with the counter-party, the transaction will complete in independent tranches, the final one of which shall be preferentially placed with Tanzanian institutions through a Tanzanian shilling-denominated, US dollar-linked, 5-year corporate bond issuance. Swala adds it is already in discussions with these institutions and shall update the market on their completion.<\/p>\n

\u201cWe are delighted at the show of confidence by sophisticated institutional investors in both the Company and in the Tanzanian energy sector. Swala will be working hard over the next weeks to close the first tranche of this material transaction. For our shareholders, owners of the 106 million shares that we have on issue, we are seeking to create continuous value growth over the next decade or more and allow the Company to continue to expand both inside Tanzania, in Africa and overseas. We aim to create further value for local institutions through our second corporate bond tranche, in line with our commitment to help in the development of the Tanzanian capital markets,\u201d says Swala CEO, Dr. David Mestres Ridge.<\/p>\n

Late last year Swala Oil & Gas (Tanzania) plc announced it engaged the same investor to place corporate bonds of up to a value of $120 million in order to finance successful acquisition of Block D<\/a> in Burundi.<\/p>\n

The explorer has been going through financial issues<\/a> unable to secure any funding to continue its activities or realize its assets thus very likely unable to contribute to the fulfill the commitments as per the agreement with the operator according to a report by HQ advisory in 2016.<\/p>\n

Swala Oil and Gas has a 25% equity interest in, and is the operator of, the Kilosa-Kilombero and Pangani licences both in Tanzania as well as Block D in Burundi.<\/p>\n","protected":false},"excerpt":{"rendered":"

Swala Oil & Gas (Tanzania) PLC has announced that it has entered into a letter of intent with a global institutional investor Exotix Partners LLP for the placement of junior … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":1171,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[5398,6137,5396,1327,1966,5914,5883,2466],"class_list":["post-5939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-corporate-bond","tag-debt-financing","tag-exotix-partners-llp","tag-kilosa-kilombero","tag-pangani","tag-swala-oil-gas","tag-swala-oil-gas-tanzania-plc","tag-tanzania","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/swala-energy.jpg?fit=606%2C441&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1xN","jetpack-related-posts":[{"id":5291,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-raises-up-to-120-million-to-fund-burundi-block-acquisition\/","url_meta":{"origin":5939,"position":0},"title":"Swala Energy Raises Up To $120 Million To Fund Burundi Block Acquisition","author":"","date":"October 14, 2016","format":false,"excerpt":"Swala Oil & Gas (Tanzania) plc has announced it engaged Exotix Partners LLP (Exotix) to place corporate bonds of up to a value of $120 million in order to finance successful acquisition of Block D in Burundi. Swala Energy says the successful acquisition of Block D in Burundi is part\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/swala-energy-1.jpg?fit=650%2C451&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/swala-energy-1.jpg?fit=650%2C451&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/swala-energy-1.jpg?fit=650%2C451&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":6192,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-plans-local-bond-offering-tanzania-uganda\/","url_meta":{"origin":5939,"position":1},"title":"Swala Oil & Gas Plans Local Bond Offering in Tanzania and Uganda","author":"","date":"August 14, 2017","format":false,"excerpt":"East Africa\u2019s first listed oil and gas company Swala Oil & Gas (Tanzania) Plc has said it \u00a0plans investor meetings in Dar es Salaam and Kampala, Uganda, to offer bonds to local investors. According to the company the local tranche of 7-year retail bonds will have a coupon of 12-16%\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/swala-energy.jpg?fit=606%2C441&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/swala-energy.jpg?fit=606%2C441&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/swala-energy.jpg?fit=606%2C441&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":7653,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-terminates-further-investment-in-pae-panafrican-energy-corporation\/","url_meta":{"origin":5939,"position":2},"title":"Swala Oil & Gas Terminates Further Investment in PAE PanAfrican Energy Corporation","author":"","date":"April 16, 2019","format":false,"excerpt":"Swala Oil & Gas (Tanzania) PLC has announced that, pursuant to the terms of its investment agreement with Orca Explorations Group in respect of PAE PanAfrican Energy Corporation (PAEM), the parties have agreed to terminate the Agreement","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/08\/swala-energy-orca-exploration.png?fit=331%2C303&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":6363,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-tanzania-reports-0-47m-loss-h1-2017-results\/","url_meta":{"origin":5939,"position":3},"title":"Swala Oil and Gas (Tanzania) reports $0.47M Loss in H1 2017 Results","author":"","date":"October 3, 2017","format":false,"excerpt":"Dar es Salaam stock exchange listed Swala Oil and Gas (Tanzania)\u00a0 and\u00a0a subsidiary of Swala Energy Limited. Swala Energy Limited is a public company listed on the Australian Securities Exchange has posted\u00a0 a $471,500 loss for the period that ended 30th June 2017 an improvement from the $481,800 the company\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/swala-energy.jpg?fit=606%2C441&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/swala-energy.jpg?fit=606%2C441&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/swala-energy.jpg?fit=606%2C441&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":6653,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-set-acquire-first-producing-assets-tanzania\/","url_meta":{"origin":5939,"position":4},"title":"Swala Energy Set To Acquire First Producing Asset in Tanzania","author":"","date":"January 3, 2018","format":false,"excerpt":"Swala Oil and Gas entered into an agreement with Orca Exploration to acquire up to 40% \u00a0interest in the Songo Songo producing assets currently held by the international finance corporation (IFC) for $130 million based on an agreed value of US$325 million as earlier announced in August. 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