Tullow Oil Plc announced a bond buyback that will see the oil and gas company tap a new $400 million debt facility with Glencore Plc.

Tullow will purchase as much as $300 million of the senior notes due in 2025 using funds from the five-year facility entered into earlier this week. It also said it will buy back as much as $100 million of its senior secured bonds maturing in 2026.

The funding deal with Glencore sent Tullow’s bond and stock prices soaring this week. It’s an example of how commodity traders can step in to finance oil and gas producers as banks narrow their exposure to fossil fuels.

The UK-based company, which mainly operates across African nations, has used buybacks to trim its debtload in the past. Retiring the notes early means it can take advantage of below-par prices and avoid the need to refinance at higher interest rates in public markets as maturities loom.

The company set an auction bid range for the $633 million notes due 2025 between 90 cents on the dollar and 92 cents on the dollar, including a premium for those participating early in the process. Investors in the $1.6 billion bonds due in 2026 can sell back their holdings at a minimum price of 89.125 cents on the dollar, the company said.

Tullow also revised up its guidance for full-year free cash flow to around $150 million, in part driven by increased sales volumes in Gabon, according to a trading update Wednesday.

--With assistance from Christine Burke and Giulia Morpurgo.