IGas Energy arranges $165m senior secured bond issue 

IGas Energy, which is investigating the shale potential of sites across the North West, has arranged a five-year, $165m senior secured bond issue to refinance its existing debt and for general business funding.

The bond issue, listed in Oslo, will carry a fixed interest rate of 10% a year and semi-annual amortisation of 2.5% of the initial loan amount. 
 
ABG Sundal Collier Norge ASA acted as sole arranger and bookrunner for the bond issue.
 
In January, the company said it was raising £23m in a share issue to partly fund shale gas exploration in the North West.


 
The company has been looking at the shale potential of a number of sites owned by Peel Group across the North West, including Ince Marshes and Doe Green at Warrington.


 
Following the lifting of restrictions on the hydraulic fracturing – or fracking – process used to release the gas, the company said it is now, “appropriate… to further demonstrate the significant potential of its unconventional resource base”.