Swala Oil & Gas, Tanzania has engaged Exotix Partners, a boutique investment bank for frontier markets,  to place corporate bonds of up to a value of $120m in order to finance a material transaction. 

The move follows Swala’s successful acquisition of Block D in Burundi as part of its strategic intent of continuing to expand operations into other African jurisdictions.

Swala is the first oil and gas company listed on the Dar es Salaam stock exchange with a significant local ownership,

The company holds assets in the world-class East African Rift System with a total net land package in excess of 8,500 km2.

New discoveries have been announced by industry participants in a number of licences along this trend that extend the multi-billion barrel Albert Graben play so successfully developed by Tullow Oil into the eastern arm of the rift.

Swala has an active operational and business development programme to continue to grow its presence in the hydrocarbon provinces of East Africa and globally.

David Mestres Ridge, Swala’s CEO, said: “We took the decision earlier this year to balance our asset portfolio and to expand our area of operations, and we are in reasonably advanced discussions aimed at achieving those objectives.”

“Engaging Exotix, with its unmatched experience in raising funds for African projects, is a step towards completing that transaction. As an active supporter of the development of the Tanzanian capital markets, Swala will also invite interested Tanzanian institutions, along with other investors, to participate in this Exotix placement,” he said.