DNO ASA Completes Successful Hybrid Bond Placement
DNO ASA, recognized as a leading Norwegian oil and gas operator, recently marked a significant milestone by completing a private placement totaling USD 400 million in subordinated hybrid bonds. These bonds are attractive due to their coupon rate set at 10.75 percent, offering investors a robust return. The bonds are structured to feature a first call at 100 percent of nominal value after a period of 5.5 years, with a step-up in the coupon after six years, ultimately maturing in 2085.
Product Details and Investor Interest
The recent bond placement witnessed overwhelming demand, showcasing strong investor interest not just within Nordic markets but also from the US and various international players, leading to significant oversubscription. This indicates a high level of confidence in DNO’s market strategy and financial health.
Quotes from Leadership
DNO's Executive Chairman, Bijan Mossavar-Rahmani, commented on this successful bond issue, emphasizing how it stands as a testament to the company's impressive 24-year uninterrupted history in the bond market. He further stated, "Given its features, including how it's treated as equity rather than debt on DNO's balance sheet, this hybrid bond elegantly complements our financial structure following the imminent closing of the acquisition of Sval Energi Group AS.”
Expected Outcomes from Bond Issuance
The settlement for these bonds is projected to occur around mid-June, contingent on customary preconditions being met. The company intends to file for listing these new bonds on the Oslo Stock Exchange. The funds generated from this placement will not only assist in refinancing existing financial obligations related to Sval Energi but will also support DNO's broader corporate financial objectives.
Support from Financial Partners
In this successful endeavor, DNO was supported by a host of reputable financial partners. Arctic Securities AS, DNB Carnegie—which operates under DNB Bank ASA—and Pareto Securities AS played pivotal roles as Joint Bookrunners for the transaction. Additionally, AGP Advokater AS provided legal advisory support to ensure that all aspects of this complex transaction were handled with expertise.
DNO’s Operational Overview
Established in 1971 and listed on the Oslo Stock Exchange, DNO ASA has carved a significant niche in the oil and gas sectors across diverse regions such as the Middle East, North Sea, and West Africa. The company plays an active role in various phases of exploration, development, and production across several key onshore and offshore licenses in regions like the Kurdistan area of Iraq, Norway, the United Kingdom, Côte d’Ivoire, and Yemen. Enthusiastic stakeholders can find more about their projects and corporate activities at their official website.
Frequently Asked Questions
What is the total amount raised by DNO ASA in the bond placement?
DNO ASA raised a total of USD 400 million in the recent hybrid bond placement.
What is the coupon rate for the hybrid bonds?
The hybrid bonds carry a coupon rate of 10.75 percent.
When will the bonds mature?
The bonds are set to mature in the year 2085.
What will the proceeds from the bond issue be used for?
The proceeds will be utilized to refinance financial obligations in Sval Energi and for general corporate purposes.
Who were the financial partners involved in this transaction?
The financial partners included Arctic Securities AS, DNB Carnegie, and Pareto Securities AS as Joint Bookrunners, along with AGP Advokater AS as legal advisor.
