The group said it will carry out a reverse tender offer to the holders of $730mln worth of bonds, and it intends to repurchase at least ‘$50mln’ of the bonds’ face value.
Genel said it would determine the price of the bond buyback through a reverse book-build, otherwise known as a ‘Dutch auction’.
The buyback offer will take place between March 18 and March 22, and on March 23 the price and subsequently the number of repurchased bonds will be announced. Brokers DNB Markets and Pareto Securities have been appointed to manage the buy-back offer.
Genel shares advanced 5.57p, or 7.57%, in early deals to trade at 84.75p each.
It comes after small Kurdistan based peer Gulf Keystone warned, on Thursday, that it was unlikely to secure a refinancing of its debts soon. Gulf Keystone, in February, said it was reviewing its financing options including talks with several interested parties about possible asset transactions or a corporate sale.
Genel separately announced this morning that total proved (i.e. 1P) oil reserves at the 25% owned Tawke field had increased by 21% to 387mln barrels due to improved confidence over primary recovery rates across the field.
At the same time Tawke’s proved and probable (2P) oil reserves reduced to 543mln barrels at the end of 2015, from 680mln barrels at the end of 2014.
The reduction reflects production of49mln barrels in 2015, and the reclassification of 82.5mln barrels from 2P reserves to contingent resources pending a review of future investments into enhanced recovery and redevelopment plans.
Genel said its updated share of Tawke reserves would now amount to 241.9mln barrels, compared to 263.9mln as estimated at the time of its full year 2015 results statement.