Staatsolie raises $515.8m via bond issuance

Suriname's state-owned energy company Staatsolie has raised a total of $515.8 million through an issuance of debt bonds aimed at gathering capital for the tiny South American country's first oil and gas offshore project, the company said on Monday.

Staatsolie needs to raise $2.4 billion to secure a 20 per cent stake in the $12 billion GranMorgu project, to be operated by TotalEnergies and with expected first output in 2028.

The company has been issuing debt bonds since last year to gather a portion of the investment needed, while in talks with foreign banks to secure up to $1.5 billion in loans this year. It also set aside its own cash reserves.

The sum raised through the allocation of bonds, which will mature in 2033 and have interest rates of between 7.25 per cent and 7.75 per cent, was higher than an original target of $304 million sought by the company.

The issuance included $468.75 million in dollar-denominated bonds and the equivalent of $47 million in euro-denominated bonds, it said in a release.

"Proceeds from the bond issue will be used by Staatsolie to co-fund its participation of up to 20 per cent in the development of the GranMorgu offshore oil field in Block 58," it said.

This project, which is in the stage of contract allocations, is, "progressing steadily," Staatsolie said. Part of the proceeds will be used to refinance bonds maturing in 2025 and 2027, the company added.

(Reporting by Ank Kuipers, writing by Marianna Parraga Editing by Marguerita Choy)