Genel Energy lists its first bond issue on Nordic ABM

Energy, Oil Industry, Stock Markets — By on May 27, 2014 at 9:26 AM

Oslo Børs27/05/2014 – The oil company Genel Energy lists its first bond issue on Nordic ABM today. The issue size of USD 500 million makes this the largest new listing on Nordic ABM so far this year.

Genel Energy has its origin in ownership interests in oil fields in the Kurdistan Region of the Middle East, and it shares are listed on the London Stock Exchange. The company’s bond loan – Genel Energy Finance L 14/19 7.50% USD C – of USD 500 million has a fixed interest rate of 7.5% and runs to May 2019. DNB Markets and Pareto Securities are the managers for this issue.

An increasing number of foreign companies are raising loan capital on the Oslo Børs marketplaces. Foreign companies that have listed bonds so far this year include oil companies such as ShaMaran Petroleum, Iona Energy, Salamander Energy and Igas Energy, as well as rig companies such as Axis Offshore, BassDrill Alpha and North Atlantic Drilling. The Dutch ship owner Bluewater Holding carried out the second-largest new issue on Nordic ABM so far this year of NOK 2.4 billion (USD 400 million), while the Toronto-listed energy company Iona Energy carried out the third-largest placement at NOK 1.7 billion (USD 175 million).

The Norwegian market for corporate bonds – high-yield bonds – has become an export industry, with foreign companies coming to Norway to raise loan capital from foreign investors. Oslo is often mentioned in the same way as New York and London as one of the world’s best-functioning high yield markets. The Norwegian high yield market has proved particularly popular with borrowers in the energy and maritime sectors. These are attractive sectors for international investors. Norwegian investment firms have developed both specialist expertise and placing capacity for borrowers in these sectors, and this has helped to promote Oslo Børs into the elite division internationally.

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