- Spud Energy secures syndicated long-term finance facility with the State Bank of Pakistan
- The facility is worth C$17.2 million (US$12.95 million)
- Syndicate partners include Askari Bank, JS Bank and Al Baraka Bank (Pakistan)
- Monies to be used for refinancing existing facilities
- There was no movement on Jura Energy shares, which traded at C$0.12
Spud Energy Limited – a Jura Energy subsidiary – has secured a long-term syndicated term finance facility with the State Bank of Pakistan.
Proceeds will be used to re-finance the company’s existing financing facilities and fund capital expenditures.
The facility is in Pakistani rupees with an approximate value of C$17.2 million (US$12.95 million) using the January 31 exchange rate of US$1.00 to PKR154.4878.
It is structured in two components – a syndicated conventional term finance facility of about C$ 13.2 million (US$10.03 million) and a shariah compliant Islamic diminishing musharaka term finance of about C$3.04 million (US$2.29 million).
The syndicate partners are Askari Bank, JS Bank and Al Baraka Bank (Pakistan) – the two former participating in the conventional term financing while the latter will participate in the Islamic mushraka financing component.
A three-month Karachi Inter Bank Offered Rate mark-up of 13.49 per cent – as per the State Bank of Pakistan’s January 31 rate – will be carried by the facility plus 2.50 per cent, and is payable quarterly in arrears.
It matures five years from the date of first disbursement with the principal in 16 equal quarterly instalments after a one-year grace period.
Jura Energy is a petroleum and natural gas exploration, development and production company with properties in Pakistan, and conducts its business in the country through its subsidiaries – Frontier Holdings and Spud Energy.
There was no movement on Jura Energy shares, which trading at C$0.12.