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Tullow Oil, an Africa-focused oil explorer and producer, has launched a convertible bond offering worth up to $300 million, a statement said on Wednesday.

The company said the bonds offering will further diversify its sources of funding and fund capital investment in oil fields based in West and East Africa.

“The proposed Convertible Bond issue will further diversify Tullow Oil’s sources of funding and give the company access to a new investor base. As per our most recent trading statement, our focus will continue to be on strengthening the balance sheet and deleveraging the business,” said Ian Springett, Chief Financial Officer of Tullow Oil.

The bonds, which will be due in 2021, will carry a coupon rate of between 5.875 to 6.625 percent. The bonds will also be convertible into Tullow Oil shares, with conversion price set at a 30 to 35 percent premium above the company’s share price on July 6, 2016.

Tullow Oil announced in April that its banks had agreed to a 12-month extension on a $3.5 billion corporate facility and to increase flexibility on another, helping the company to remain well funded amidst low oil prices.

"The dilution should be limited and this is a useful diversification of funding for Tullow," analysts at RBC Capital Markets who rate Tullow's stock as 'outperform', told Reuters.

Headquartered in London, Tullow Oil has exploration and production assets in Africa, Latin America, the Caribbean and Europe. The company is listed on the London, Irish, and Ghanaian stock exchanges.

A consortium led by Tullow Oil struck oil in Ghana in 2007 and began commercial production in 2011. Today, Ghana produces about 100,000 barrels of oil per day and expects to reach 180,000 barrels per day in 2018.