Serica Energy plc (LSE:SQZ) has successfully raised $300 million through a new issue of five-year senior unsecured Nordic bonds, with the offering significantly oversubscribed. The bonds carry an annual coupon of 7.875% and attracted strong interest from investors across the Nordic region, the UK, and international markets. Settlement is expected around 12 May 2026, with plans to list the bonds on the Euronext ABM market in Oslo.
The company intends to use the net proceeds to fully repay its drawn Reserve Based Lending (RBL) facility, while retaining the structure for future flexibility. This move is expected to lift pro forma liquidity to approximately $675 million. Management said the transaction enhances balance sheet strength, broadens funding sources, and positions Serica to pursue growth opportunities, including acquisitions and development projects across its North Sea portfolio.
Serica’s outlook reflects a mixed financial picture. Recent performance has been weaker, with a decline in 2025 revenue, a reported net loss, and negative free cash flow. However, these factors are partly offset by strong share price momentum and a supportive earnings outlook, including reaffirmed 2026 guidance, an improving net debt position, and a maintained dividend. Valuation is underpinned by an attractive yield, though the negative price-to-earnings ratio highlights ongoing profitability challenges.
More about Serica Energy
Serica Energy plc is an independent UK oil and gas company focused on the UK Continental Shelf, where it accounts for roughly 10% of domestic gas production. Its key producing assets include the Bruce, Keith, and Rhum fields in the Northern North Sea, as well as interests in fields linked to the Triton FPSO in the Central North Sea. The company also holds a 40% operated stake in the Greater Laggan Area and the Shetland Gas Plant.
Serica is pursuing further growth through acquisitions, including planned stakes in the Catcher and Golden Eagle fields from ONE-Dyas and additional assets from Spirit Energy expected in 2026. Currently listed on AIM under ticker SQZ, the company intends to transition to the London Stock Exchange Main Market as part of its longer-term strategy to expand scale and enhance shareholder value.
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