Genel Energy plc Announces Completion of private placement of U.S. $230 million senior unsecured bonds

26 March 2015

Genel Energy plc

Genel Energy ("Genel") plc is pleased to announce that it has priced an issue of U.S. $230 million in senior unsecured bonds ("the Bonds") due 14 May 2019 on the same commercial terms as the existing GENEL01 PRO U.S. $500 million bond. The Bonds were issued at a market price in line with the trading level of GENEL01 PRO.

Fosun Group was a lead investor in the bond issue.

Financial discipline and a robust balance sheet are crucial in the oil and gas industry, and a source of competitive advantage at a time of low oil prices. The net proceeds of the Bonds will be used to underpin Genel's financial strength and provide flexibility to implement our refocused Kurdistan Region of Iraq ("KRI") strategy. After the successful issuance of the Bonds, the average cost of debt on the Company balance sheet is 8.7%.

In the KRI, production at the Taq Taq and Tawke fields continues to increase as planned. New gross daily production records have been set at both fields, with Taq Taq production having recently surpassed 142,000 bopd, and Tawke 147,000 bopd.

The temporary domestic market sales channel, implemented by the Kurdistan Regional Government ("KRG"), under which contractors receive 50% of domestic sales proceeds, has run successfully for Taq Taq through February and March 2015. Around 30-40,000 bopd continues to be sold locally, and cash received in line with expectation. Domestic sales from Tawke have increased throughout March.

The oil export agreement between the KRG and Federal Government of Iraq is being fully implemented, and both sides remain firmly committed to the agreement. Production from the Kurdistan Region of Iraq has risen to record levels, with exports by the KRG for marketing by SOMO increasing in line with mutually agreed forecasts, and in turn budget payments have been transferred to Erbil. This reinforces our expectation that payments for exports will be received through 2015.

Settlement date for the new Bonds is expected on or about 9 April 2015. Following settlement of the new Bonds, the Company intends to call for a bondholder meeting in the existing GENEL01 PRO bond. The meeting will seek approval for a merger of the two bond issues into one enlarged bond with a combined amount of U.S. $730 million listed on the Nordic ABM.

Pareto Securities has acted as manager for the transaction.

For further information, please contact:

Genel Energy
Julian Metherell, Chief Financial Officer
Phil Corbett, Head of Investor Relations
Andrew Benbow, Head of Public Relations
+44 20 7659 5100
Vigo Communications
Patrick d'Ancona            
+44 20 7016 9573

Notes to editors:

Genel Energy is an independent oil and gas exploration and production company listed on the main market of the London Stock Exchange (LSE: GENL). The Company, with headquarters in London and additional offices in Ankara and Erbil, is the largest independent oil producer and the largest holder of reserves and resources in the Kurdistan Region of Iraq and, through its Miran and Bina Bawi gas fields, is set to be a cornerstone provider of gas to Turkey under the KRI-Turkey Gas Sales Agreement. Genel also continues to pursue further growth opportunities within the Middle East and Africa. For further information, please refer to  


This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil & gas exploration and production business. Whilst the Company believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Company's control or within the Company's control where, for example, the Company decides on a change of plan or strategy. Accordingly no reliance may be placed on the figures contained in such forward looking statements.


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