REG - Sound Energy PLC - Appointment re Tendrara Development Financing

Sound EnergyAnnouncement

23/06/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220623:nRSW8747Pa&default-theme=true

RNS Number : 8747P  Sound Energy PLC  23 June 2022

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation ("MAR")
(EU) No. 596/2014, as incorporated into UK law by the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement, this inside
information is now considered to be in the public domain.

 

23 June 2022

Sound Energy plc

("Sound Energy" or the "Company")

 

Appointment of Attijariwafa Bank re Tendrara Development Financing

 

Sound Energy, the transition energy company, is pleased to announce that it
has entered into an Arrangement and Mandate letter with Attijariwafa bank of
Morocco (the "Arranger") under which the Company has mandated the Arranger in
relation to the arrangement of debt financing in relation to the development
of Sound Energy's Tendrara Production Concession (the "Agreement").

 

Pursuant to the Agreement, the Arranger has been mandated, and provided with
exclusivity by the Company for a period of eight months, to arrange a
long-term senior debt facility with a term of no more than 12 years of up to
2.250 billion Moroccan dirhams (approximately US$250 million) for the partial
financing of the currently estimated 3.000 billion Moroccan dirhams
(approximately US$330 million) phase 2 development cost of the Tendrara
Production Concession (the "Financing").

 

During the term of exclusivity, the parties will seek to negotiate binding
terms for the Financing within 120 days of entry of the Agreement. The
Agreement envisages that any Financing arranged pursuant to the Agreement may
be provided directly and/or partially underwritten directly by the Arranger or
by third parties.

 

Graham Lyon, Sound Energy's Executive Chairman, commented:

 

"Today's announcement confirms the support Sound Energy has with local
financiers to undertake the Tendrara pipeline project development.
Attijariwafa bank is a leading bank in Morocco and has provided Sound Energy
with a compelling case to seek to provide the majority of Project Finance for
the development. The Company is also progressing potential vendor financing,
secondary subordinated debt and partial asset disposal options to fulfil the
remaining element of Project financing required to achieve year end FID. This
mandate is a significant step towards reaching Final Investment Decision
unlocking further the value of Tendrara Concession to Sound Energy
shareholders, that can aid the provision of economical and secure gas supply
for the local Moroccan power production and domestic markets.  Domestic gas
supply remains a highly credible energy source for Morocco amongst the
difficult geopolitical situation of international energy supply".

 

The Company cautions that notwithstanding the entry of the Agreement and the
award of exclusivity to the Arranger, there can at no certainty that Financing
will be secured pursuant to the Agreement or as to the terms on which such
financing is available.

 

 

 

For further information please contact:

 

 Vigo Communications - PR Adviser             Tel: 44 (0)20 7390 0230

 Patrick d'Ancona

 Finlay Thomson

 Sound Energy                                 chairman@soundenergyplc.com (mailto:chairman@soundenergyplc.com)

 Graham Lyon, Executive Chairman

 Cenkos Securities - Nominated Adviser        Tel: 44 (0)20 7397 8900

 Ben Jeynes

 Peter Lynch

 SP Angel Corporate Finance LLP - Broker      Tel: +44 (0)20 3470 0470

 Richard Hail / Stuart Gledhill / Adam Cowl

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCUUSBRUUUNUAR