GIC US$50 million Convertible Bond Extension

RNS Number : 9241R

Green Dragon Gas Ltd

15 December 2016

 

15 December 2016

GREEN DRAGON GAS LTD.

("Green Dragon" or the "Company")

GIC US$50 million Convertible Bond Extension

Green Dragon Gas Ltd. (LSE: GDG), one of the leading independent gas development and production companies in China, is pleased to announce that it has reached agreement with GIC Private Limited ("GIC") to extend the maturity of the US$50 million convertible bond entered into in June 2014 (the "Bond").

Under the agreement, the Bond remains unsecured, has a revised coupon of 10% and a maturity date extended to 31 December 2020 (subject to a one-time redemption option exercisable by GIC on the current maturity). The Bond is convertible into ordinary shares at a conversion price of US$2.83 per share representing a 25% premium over the 13 December 2016 closing price.

At final maturity of the Bond, GIC has the right to require the Company to purchase its conversion shares at a price based on the 90 day VWAP calculated as of 31 December 2020 and to be settled prior to 30 April 2021.

Randeep S. Grewal, Chairman and Founder of Green Dragon, commented:

"We are very pleased with the continued support from GIC who has been a very supportive shareholder and bond holder since 2013. This extension allows the Company to focus on the expanding operations in China and concluding our agreements on the joint account audit with our partner China National Offshore Oil Corporation (0883.HK), ("CNOOC")."

For further information on the Company and its activities, please refer to the website at www.greendragongas.com or contact:

Instinctif Partners

David Simonson / George Yeomans

Tel: [phone]

Citigroup

Tom Reid / Luke Spells

Tel: [phone]

Peel Hunt

Richard Crichton / Ross Allister

Tel: [phone]

About Green Dragon Gas

Green Dragon Gas is a leading independent gas producer with operations in China and is listed on the main market of the London Stock Exchange (LSE: GDG). The Company has 549Bcf of 2P reserves and 2,379Bcf of 3P reserves across eight production blocks covering over 7,566km² of licence area in the Shanxi, Jiangxi, Anhui and Guizhou provinces. It holds six Production Sharing Agreements with strong, highly capitalised Chinese partners including CUCBM (CNOOC), CNPC and PetroChina, and has infrastructure in place to support multiple routes to monetise gas production.

 

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