Suriname's Staatsolie raises 515.8 millions dollars through bond issue

Suriname’s state-owned energy firm Staatsolie raised $515.8 millions through the issuance of debt bond aimed at raising capital for the small South American country’s first offshore oil and gas project.

Staatsolie must raise $2.4 billion in order to acquire a 20% stake of the $12 billion GranMorgu Project, which will be operated by TotalEnergies. The first production is expected in 2028.

The company is in negotiations with foreign banks for up to $1.5billion in financing.

This year. The company also put aside cash reserves.

The company had originally aimed to raise $304 million through the sale of bonds that will mature in 2033 with interest rates between 7.25 and 7.75%. However, the amount raised was more than the original target. In a press release, the company said that it issued $468.75 in dollar bonds and $47 in euro bonds.

Staatsolie said that the proceeds from the bond issue would be used to co-fund up to 20% of its participation in the development of GranMorgu offshore in Block 58.

Staatsolie stated that the project is "progressing" steadily. The company said that a portion of the proceeds would be used to refinance debts maturing in the years 2025 and 2027.

(source: Reuters)