Bloomberg News

Afren Starts Syndicating $200 Million Kurdistan Acquisition Loan

November 07, 2011

Nov. 4 (Bloomberg) -- Afren Plc, the U.K. explorer of oil and gas focused on Africa, started syndicating a $200 million loan for acquisitions in the Iraqi region of Kurdistan.

The company agreed to pay interest of 900 basis points more than the London interbank offered rate for the 18-month loan, which offers lenders recourse to the company’s existing fields in Africa and some other assets, lenders said in a statement today. A basis point is 0.01 percentage point.

Afren, based in London, will also pay lenders between 75 basis points to 150 basis points in participation fees.

Lenders will host a meeting in London on Nov. 9 to market the secured term loan, which will back the purchase of 60 percent of the Barda Rash and 20 percent of the Ain Sifni projects from Komet Group and the Kurdish regional government, according to the statement.

--Editors: Cecile Gutscher, Michael Shanahan

To contact the reporter on this story: Patricia Kuo in London at pkuo2@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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