Aker Energy issues convertible bonds to Africa Finance Corporation

(Accra/Oslo, 8 July, 2019) Aker Energy AS ("Aker Energy”) has entered into an agreement to issue USD 100 million of convertible subordinated bonds to Africa Finance Corporation ("AFC”). AFC also intends to take part in future capital market activities.

"We are very pleased to get AFC on board as investors in Aker Energy. We look forward to further strengthening our collaboration in the years to come, as we embark on development projects offshore Ghana,” says Jan Arve Haugan, CEO of Aker Energy.

Aker Energy has issued subordinated convertible bonds to AFC of USD 100 million. The bonds have a coupon of 5.5 per cent per year and will be converted to equity in the event of an Initial Public Offering ("IPO”) of Aker Energy, at an agreed discount to an IPO offering price of 1.85 per cent per year. The bonds have a maturity of five years, with an option to extend with another three years. The proceeds from the bonds will be part of the financing for the development of the Deepwater Tano Cape Three Points ("DWT/CTP”) block offshore Ghana.

As part of the agreement, AFC has received equity warrants with the right to subscribe shares in Aker Energy in future equity offerings by the company of up to USD 50-100 million. AFC also intends to take part in other capital market activities initiated by Aker Energy in the future.

"Partnerships with financially and technically strong sponsors, is a key component of our Natural Resources strategic focus. We are therefore delighted to be announcing this transaction with Aker Energy, which, through the Aker group, has an outstanding track record of executing complex offshore projects like the DWT/CTP block in Ghana,” Samaila Zubairu, President and CEO of AFC commented.

AFC is a multilateral finance development institution investing primarily in companies and infrastructure projects operating in Africa, with an equity capital base of USD 1 billion. The institution was formed in 2007 and has more than 20 African member countries, including Ghana.

Arctic Securities AS acts as sole manager of the transaction.

For more information, please contact:

Håkon Høgetveit, VP Investor Relations and Communications, Aker Energy AS 
+47 476 29 348 
haakon.hoegetveit@akerenergy.com

Torbjørn Kjus
Chief Economist & Head of Investor Relations, Aker ASA
+47 94147730
torbjørn.kjus@akerasa.com

About Aker Energy
Aker Energy Ghana Ltd., a subsidiary of Norwegian-based oil exploration and production firm, Aker Energy AS, is the operator of the Deepwater Tano Cape Three Points (DWT/CTP) Petroleum Agreement, with a 50 per cent participating interest in the DWT/CTP Petroleum Agreement. Its partners are Lukoil Overseas Ghana Tano Limited (38%), the Ghana National Petroleum Corporation (GNPC) (10%) and Fueltrade Limited (2%). Aker Energy aims to become the oil and gas operator of choice offshore Ghana, by maturing and producing resources in a safe, efficient and reliable manner to the benefit of the company, partners and the people of Ghana. Aker Energy has offices in Oslo, Norway and Accra, Ghana. Please visit www.akerenergy.com for more information.

About Africa Finance Corporation
AFC, an investment grade multilateral finance institution, was established in 2007 with an equity capital base of USD 1 billion, to be the catalyst for private sector-led infrastructure investment across Africa.  With a current balance sheet size of approximately USD 4.2 billion, AFC is the second highest investment grade rated multilateral financial institution in Africa with an A3/P2 (Stable outlook) rating from Moody’s Investors Service. AFC successfully raised USD 750 million in 2015 and USD 500 million in 2017; out of its Board-approved USD 3 Billion Global Medium-Term Note (MTN) Programme. Both Eurobond issues were oversubscribed and attracted investors from Asia, Europe and the USA. 
 
AFC’s investment approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.  AFC invests in high quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. To date, the Corporation has invested approximately US$4 billion in projects within 28 countries across North, East, West and Southern Africa. Please visit www.africafc.org for more information