Petronas prices US$5b bond and sukuk offering

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KUALA LUMPUR (Mar 12): Petroliam Nasional Bhd (Petronas) has priced a US$5 billion multi tranche offering, comprising a US$1.25 billion five-year sukuk tranche and US$750 million seven-year, US$1.5 billion 10- year and US$1.5 billion 30-year conventional notes.

The conventional notes and sukuk are expected to be assigned the rating of A1 (Moody’s) and A- (S&P).

Bank of America Merrill Lynch, CIMB Investment Bank, Citigroup, JP Morgan and Morgan Stanley acted as active joint bookrunners and lead managers.  

"The proceeds will be used by Petronas, or its subsidiaries and associated companies, for general corporate purposes — any use of proceeds from the sukuk will be shariah compliant," said Citigroup in a statement today.

This is the first offering from Petronas since its US$4.5 billion dual-tranche offering in August 2009, and is the largest G3 issuance from Southeast Asia. 

G3 bonds are those issued in US dollars, yen and euros.