IPC explores diverse sources of funding with a $300mn bond issue

IPC explores diverse sources of funding with a $300mn bond issue

STOCKHOLM, SWEDEN: International Petroleum Corporation (IPC) has raised $300 million through a bond issue, as the Lundin Group’s company explores diverse sources of funding to capitalize on the next phase of the energy transition in the upstream oil and gas industry.

IPC announced it completed a private placement of USD 300 million of senior unsecured bonds.

Mike Nicholson, Chief Executive Officer of IPC comments: “We are very pleased to be launching IPC’s first USD 300 million bond issue today, accessing the debt capital markets at a favourable time.

We strongly believe that the winners in the next phase of the energy transition in the upstream oil and gas industry will be those companies that are able to access diverse sources of funding”.

The bonds will have a tenor of five years and will have a fixed coupon rate of 7.25 percent per annum, with interest payable in semi-annual instalments. The bond issue is expected to be rated B+ by S&P Global Ratings and B1 by Moody’s.

Settlement of the bonds is expected to occur on or around February 1, 2022, subject to the satisfaction of customary conditions precedent. IPC intends to make an application to list the bonds on the Oslo Stock Exchange. Net proceeds of the bonds will be used to repay IPC’s existing indebtedness under bank credit facilities and for general corporate purposes.

Arctic Securities and Pareto Securities acted as Joint Lead Managers, and SpareBank 1 Markets acted as Co-Manager, in connection with the bond placement.

“Whilst we do not have an imminent acquisition, we believe that being able to demonstrate to sellers that IPC has the financial strength on its balance sheet, will enable IPC to access a greater universe of opportunities whilst differentiating us from our peers in terms of certainty of being able to close transactions,” Mike Nicholson said.

International Petroleum Corp. (IPC) is an international oil and gas exploration and production company with a high quality portfolio of assets located in Canada, Malaysia and France, providing a solid foundation for organic and inorganic growth.

IPC is a member of the Lundin Group of Companies. IPC is incorporated in Canada and IPC’s shares are listed on the Toronto Stock Exchange (TSX) and the Nasdaq Stockholm exchange under the symbol “IPCO”.


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