Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Jura Energy subsidiary – Spud Energy Limited – secures syndicated long-term finance facility with State Bank of Pakistan
  • Facility worth CAD$17.2 million (US$12.95 million)
  • Syndicate partners include Askari Bank, JS Bank and Al Baraka Bank (Pakistan)
  • Monies to be used for refinancing existing facilities
  • No movement on Jura Energy shares but trading at CAD$0.12

Spud Energy Limited – a Jura Energy subsidiary – has secured a long-term syndicated term finance facility with the State Bank of Pakistan, proceeds of which will be used to re-finance the company’s existing financing facilities and fund capital expenditures.

The facility is in Pakistani rupees with an approximate value of CAD$17.2 million (US$12.95 million) using the January 31 exchange rate of US$1.00 to PKR154.4878, and is structured in two components – a syndicated conventional term finance facility of about CAD$ 13.2 million (US$10.03 million) and a shariah compliant Islamic diminishing musharaka term finance of about CAD$3.04 million (US$2.29 million).

The syndicate partners are Askari Bank, JS Bank and Al Baraka Bank (Pakistan), with the two former participating in the conventional term financing while the latter will participate in the Islamic mushraka financing component.

A three-month Karachi Inter Bank Offered Rate mark-up of 13.49% – as per the State Bank of Pakistan’s January 31 rate – will be carried by the facility plus 2.50% and is payable quarterly in arrears.

It matures five years from the date of first disbursement with the principal in 16 equal quarterly instalments after a one-year grace period.

Jura Energy is a petroleum and natural gas exploration, development and production company with properties in Pakistan, and conducts its business in the company through its subsidiaries – Fronteir Holdings and Spud Energy.

At the time of writing there was no movement on Jura Energy shares but were trading at CAD$0.12. It has a market capitalization of CAD$8.3 million.

More From The Market Herald

" Grizzly (TSXV:GZD) to advance 2022 drilling for BC precious & battery metals projects

Grizzly Discoveries (GZD) is reviewing proposals for core drilling during the 2022 exploration season.

" ArcPacific (TSXV:ACP) locates lost gold-copper mine on LMSL Project

ArcPacific Resources Corp. (ACP) has discovered an early 1900s era gold-copper mine at its LMSL Project in British Columbia.

" CanAlaska Uranium (TSXV:CVV) begins airborne survey at Geikie Project

CanAlaska Uranium (CVV) has begun a high-resolution helicopter-borne aeromagnetics and radiometrics survey on its Geikie project.

" Osisko Development (TSXV:ODV) releases San Antonio Property mineral resource estimate

Osisko Development Corp. (ODV) has released an initial open pit resource estimate at its San Antonio Project in Sonora State, Mexico.