Lime Petroleum Holding’s Bold Bond Move: Rex International Eyes German Asset Expansion, Potential Share Price Catalyst

Key Points for Investors

• Rex International Holding’s subsidiary, Lime Petroleum Holding AS (LPH), has appointed ABG Sundal Collier ASA (ABGSC) as its exclusive manager for fixed income investor meetings.
• LPH is considering the launch of a new NOK-denominated senior secured bond issue with a three-year tenor.
• The bond proceeds will be used to develop assets in Germany and for general corporate purposes.
• The new bond will rank pari passu with LPH’s existing bond (ISIN NO0012559246), offering continuity and security for current bondholders.
• Rex International operates across Norway, Germany, Oman, and Benin, holding operatorship in Oman, Benin, and Germany.
• The company leverages proprietary Rex Virtual Drilling technology to de-risk exploration and development assets, a competitive edge in oil exploration.

Why This News Is Potentially Price Sensitive

The announcement of a possible new senior secured bond issue marks a significant financing event for Lime Petroleum Holding and its parent, Rex International. Such a move can have material implications for the company’s capital structure, liquidity, and growth prospects:

• Expansion into Germany: The stated use of proceeds for developing German assets signals a strategic push into a key European energy market. This could materially impact Rex International’s growth trajectory and earnings potential.
• Bond Structure: By ensuring the new bond is pari passu with the existing bond, LPH is maintaining a robust debt profile, which may enhance investor confidence and support future fundraising efforts.
• Market Reaction: The success and terms of the bond issue will depend on prevailing market conditions. If executed on favorable terms, it may be seen as a vote of confidence in Rex International’s business model and growth prospects, potentially moving the share price.
• Forward-Looking Statements: The press release contains projections and forward-looking statements subject to various risks and uncertainties. Changes in interest rates, capital availability, operating expenses, or regulatory policies may impact the actual financial outcome.

Detailed Analysis for Investors

Lime Petroleum Holding AS, a subsidiary of Rex International Holding, is taking a proactive stance in funding its next growth phase by engaging ABG Sundal Collier ASA as the exclusive manager for its upcoming bond issue. This move comes as LPH and its parent seek to tap fixed income investors for new capital, with the proceeds earmarked for asset development in Germany—a market with significant long-term energy demand and regulatory stability.
The company has made it clear that the launch of this NOK-denominated senior secured bond is contingent upon market conditions and acceptable terms. The bond will have a three-year tenor and align with the existing bond structure, offering current and prospective investors continuity and reduced uncertainty.
For shareholders, this could be a pivotal moment. Not only does the bond issue have the potential to unlock new revenue streams from German assets, but it also reflects management’s confidence in Rex International’s ability to access capital markets and execute its growth strategy. Since its listing in 2013, Rex International has demonstrated its exploration and production capabilities, achieving four offshore discoveries and leveraging its proprietary Rex Virtual Drilling technology to reduce exploration risk.
The expansion into Germany, coupled with the company’s multinational footprint in Norway, Oman, and Benin, positions Rex International as a diversified player in the oil & gas sector. The company’s ability to secure financing at competitive terms will be critical for its continued growth, and may be closely watched by investors for signs of balance sheet strength and future earnings potential.

What Shareholders Should Watch

• Bond Issue Execution: Watch for further announcements regarding the bond’s pricing, size, and investor uptake. A successful issue could signal strong market confidence and bolster share price.
• German Asset Development: Progress on deploying bond proceeds into German assets will be key to future earnings growth.
• Market Conditions: The bond’s launch hinges on favorable market conditions, so global interest rate trends and investor risk appetite may play a role.
• Potential Risks: The company notes various uncertainties, including regulatory changes, competition, and cost pressures, which could impact the forward-looking statements.

About Rex International Holding

Rex International Holding Limited is a multinational oil exploration and production company listed on the Singapore Exchange Mainboard. The Group has strategic interests in Norway, Germany, Oman, and Benin, and operates assets in Oman, Benin, and Germany. Rex’s proprietary Rex Virtual Drilling technology gives it a competitive edge in identifying hydrocarbon liquids, supporting its track record of offshore discoveries and portfolio de-risking.

Contact Information

For further details, investors and analysts should contact Mok Lai Siong at [email protected].

Disclaimer

This article contains forward-looking statements and projections that are subject to various risks, uncertainties, and assumptions. Actual results may differ materially from those expressed or implied. Investors are advised not to place undue reliance on these statements and to consult with their financial advisors before making investment decisions.

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