Dana Gas and Crescent Petroleum, joint operators of the Pearl Petroleum Consortium, have announced the successful placement of a $500 million senior secured bond, carrying a fixed coupon of 10.375 per cent and maturing in November 2031.

The bond was 1.7 times oversubscribed, attracting strong institutional demand from investors across the US, UK, Europe, the Middle East and Asia, despite elevated global yields, inflation concerns and regional geopolitical uncertainty.

Proceeds will be used to refinance Pearl Petroleum’s existing $350 million bond, fund debt service reserve requirements, support further development at the Khor Mor and Chemchemal gas fields, and meet general corporate purposes.

Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, said: “This successful bond placement demonstrates international confidence in Pearl Petroleum and in the future of Iraq’s natural gas sector. With KM250 completed, we remain committed to the development of Khor Mor and Chemchemal fields, strengthening energy security and energy supply for millions, and supporting Iraq’s economic growth.”

Richard Hall, CEO of Dana Gas, said: “Raising $500 million in today’s challenging global financing environment is an excellent result. The level of demand allowed us to increase the issue size and has given Pearl Petroleum the funding flexibility to refinance its existing bond and pursue its next phase of growth for the benefit of the people of Iraq.” -OGN/TradeArabia News Service