Last checked at 16 Dec 2013 07:00
16 December 2013
GREEN DRAGON GAS LTD
("Green Dragon Gas" or "the Company")
US$35 million Convertible Bond at US$6.06 a 33% Premium
Green Dragon Gas Ltd. (AIM: GDG), one of the largest independent companies involved in the production and sale of CBM gas in China, is pleased to announce that it has launched a convertible bond ("the Bond") facility of up to US$100 million. The first tranche of US$35 million has been fully subscribed by GIC Private Limited and future issues of the Bond will be at the discretion of the Company. The final tranche is expected to be issued on or before 31 January 2014.
The Bond is unsecured, has a 7% coupon, is due in December 2015, and is convertible into ordinary shares at a conversion price of US$6.06 per share, representing a 33% premium to the closing price at pricing on 10 December 2013.
The Company intends to use the net proceeds to launch its 2014 drilling plan and for working capital.
Jason Triplitt, Head of European Equities, GIC Asset Management, stated:
"GIC sees long term value in the Coal Bed Methane (CBM) industry in China, GDG's extraction methodologies, gas resources and the further development of its licence blocks.We look forward to our investment into the company benefitting from its continued growth and crystallization of value after a decade of effort and experiences in the China CBM sector."
Randeep S. Grewal, Founder and Chairman of Green Dragon Gas, commented:
"I am delighted to report that the first closing is from a leading sovereign wealth fund. We look forward to working with GIC as we continue to execute our shareholder value- focused business plan. This initial closing will assist the Company to launch into its 2014 LiFaBriC drilling plan while we concurrently conclude our discussions with CNPC, Petrochina and CNOOC. The Company has firmly stated its short- term production target of 18 BCFPY through the drilling of additional LiFaBriC wells by Greka Drilling. Our annualised levels of production have been additionally enhanced by the third party drilling activities."
For further information on GIC, please refer to the website at www.gic.com.sg.
For further information on the Company and its activities, please refer to the website at www.greendragongas.com or contact:
Stephen Hill, VP Corporate Communications Green Dragon Gas
| +852 3710 0108 |
| |
Dr Azhic Basirov / David Jones Smith & Williamson - Nominated Adviser & Broker
| +44 20 7131 4000 | ||
Steve Baldwin / Nicholas Harland Macquarie Capital (Europe) Limited - Broker
| +44 20 3037 2000 |
| |
Richard Crichton / Andy Crossley Peel Hunt - Broker
| +44 20 7418 8900 |
| |
James Henderson / Phillip Dennis Pelham Bell Pottinger - Investor Relations
| +44 20 7861 3232 |
| |