SOCO has signed a new US$125 million Reserve Based Lending Facility (“RBL”) secured against the Group’s producing assets in Vietnam. In addition to the committed US$125 million, a further US$125 million is available on an uncommitted “accordion” basis. The RBL has a five year term and matures in September 2023.

The proceeds of the RBL will be available for general corporate purposes including for funding acquisitions in line with the Group's strategic growth plan.

The facility has been arranged and underwritten by BNP Paribas, Crédit Agricole Corporate and Investment Bank and Standard Chartered Bank. Evercore acted as financial adviser to the Company and Clifford Chance as the Company’s legal adviser. Herbert Smith Freehills advised the banks. 

Ed Story, President and Chief Executive Officer, commented:
“We are pleased to have concluded this financing transaction, and to have received such strong interest in the bank market and firm support from our new lenders.

The combination of existing cash, the new credit facility and the cash flow from our producing assets in Vietnam ensures that we are funded to take advantage of acquisition opportunities in line with our strategy of creating a full-cycle E&P company with a diversified portfolio.”