Corporate Bond Issuance

RNS Number : 9257W

Green Dragon Gas Ltd

13 November 2014

 

November 13, 2014

GREEN DRAGON GAS LTD

("Green Dragon" or the "Company")

Landmark USD88 Million Corporate Bond Issuance

to fund launch of 150 well drilling programme

Green Dragon Gas Ltd. (LSE:GDG), one of the largest independent companies involved in the production and sale of CBM gas in China, is pleased to announce that the Company has issued its first public corporate bond ("the Bond") into the debt capital markets and closed this initial issue at USD88m. This funding allows the Company to launch its drilling programme of 150 LiFaBriC wells at the commercial gas production block Shizhuang South (GSS) with up to 50 of the wells being funded through this closing, the refinancing of debt and general corporate purposes.

The Bond is senior secured three year paper,is due 20^th November, 2017, carries a 10% cash payment and is redeemed at 102 par. The Companyhas a right to redeem the Bond early for 107,105,103 at the 12, 18, 24 and 30 month anniversaries. The Bondis secured by a pledge over the shares of Greka Gas China Limited, a wholly owned subsidiary of Green Dragon Gas. Green Dragon shall apply for listing of the bonds on Nordic ABM or another recognized exchange. Pareto Securities acted as book runner and manager to the transaction, with Investec Bank PLC as co-manager.

Mr. Randeep S. Grewal, Founder and Chairman of Green Dragon, commented:

"We are pleased with this debt issuance as it marks the first public debt capital raised by the Company. Since inception, Green Dragon has funded its discretionary growth through equity or convertible debt issuances resulting in the current net equity being in excess of USD600m. We expect to fund our continued growth with disciplined debt issuances so as to gradually increase the current debt to equity from 8% to 25% over time.

"We expect to conclude this phase of the drilling programme concurrently by placing additional debt by the second quarter of 2015 which should enable us to complete the entire 150 LiFaBriC well programme at GSS along with the continued development of our other prolific seven gas blocks".

For further information on the Company and its activities, please refer to the website at www.greendragongas.com or contact:

Stephen Hill, VP Corporate Finance Green Dragon Gas	[phone]
David Simonson / Anca Spiridon Instinctif Partners - Investor Relations	[phone]

About Green Dragon Gas

Green Dragon is an onshore China focused upstream (Exploration & Production) company, concentrating on its core asset value proposition over eight blocks, two of which are producing. The Company's blocks are located within six Production Sharing Contracts across four Provinces: Shanxi, Anhui, Jiangxi and Guizhou.

 

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