Brooge Energy Ltd Subsidiary Completes Issuance of USD$200 million Senior Secured Bonds

NEW YORK, Sept. 11, 2020 (GLOBE NEWSWIRE) --  Brooge Energy Ltd. (“Brooge Energy” or the “Company”) (NASDAQ: BROG) today announced that its subsidiary, Brooge Petroleum and Gas Investment Company FZE (“BPGIC”), has successfully completed the issuance of a USD$200 million 5-year senior secured bond (with potential follow-on issuances of up to USD$50 million for a maximum aggregate borrowing limit of USD$250 million) in the Nordic bond market. The bonds will mature in September 2025 and have a fixed coupon of 8.50% per annum. The transaction is subject to customary closing conditions and settlement is expected to occur on September 24, 2020. BPGIC’s obligations under the bonds are guaranteed by Brooge Energy.

The bond issue provides a flexible financial platform to support the Company’s future growth agenda and marks a key milestone for the Company in entering the international bond market. The proceeds of the bond issue will, among other purposes, be used to repay existing bank debt for Phase I, thereby enabling the Company to have a single consolidated debt facility. It will also be used to fund remaining capital expenditures ahead of the launch of the Company’s Phase II oil storage facility.

Nicolaas L. Paardenkooper, CEO of Brooge Energy and BPGIC, said, “Our inaugural bond issue was well received by a global investor base and we are pleased to have secured this new debt financing. The additional capital will be used to strengthen our balance sheet and to complete construction of our Phase II oil storage facility, which is already fully contracted with a multi-year take-or-pay contract. When our Phase II storage facility is completed and operational, which we currently anticipate will occur at the end of this calendar year, the Phase I & II storage facilities will have a combined geometric storage capacity of approximately 1 million m³, or 6.3 million barrels of oil, making BPGIC the second largest storage operator in the Port of Fujairah, UAE. The Phase II facility is expected to generate significant operating cash flows when operational and is a key element in our strategy to build value for shareholders.”

Pareto Securities acted as Sole Manager in the bond transaction.

The bonds have been and will be offered only to qualified institutional buyers in reliance on Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and, outside the United States, only to non-U.S. investors pursuant to Regulation S under the Securities Act. The bonds have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction and have not been and will not be offered or sold in the United States absent an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws.