African carrier FastJet is set to raise £15.68 million ($23.2 million) through a convertible bond sale.
The carrier entered into a convertible securities agreement with New York-based institutional investor Bergen Global Opportunity Fund, which will purchase the full amount of zero-coupon securities.
The convertible securities will be issued in six tranches, says FastJet. The initial convertible security will have the nominal value of £2.56 million and an 18-month term.
The second convertible security is expected within 100 days of the date of issue with the nominal value of £2.62 million. Each of the four subsequent convertible securities will be issued 60 days after the date of issuance of the previous convertible security and will have the nominal value of £2.62 million.
"This agreement with Bergen gives us access to very significant funding during the next year on a flexible basis and will provide us with a solid platform on which to grow the business and expand our operations in Africa," says FastJet.