Thursday 28 Mar 2024
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KUALA LUMPUR (April 15): Petroliam Nasional Bhd (Petronas) said it has priced a US$6 billion multi-tranche senior bond offering, with proceeds to be used for refinancing, capital expenditure and working capital of the group.

The bond offering comprises US$2.25 billion 10-year, US$2.75 billion 30-year and US$1 billion 40-year conventional notes, Petronas said in a statement today.

“The 10-year conventional notes were priced 290 basis points over the 10-year treasury to yield 3.65%, the 30-year conventional notes were priced to yield 4.55% and the 40-year conventional notes were priced to yield 4.80%.

“There were robust demands for the bonds with the order books reaching US$37 billion at the time of pricing, which was one of the largest order books by an Asian issuer ever.

"The 6.2x oversubscription ratio reflects the market’s confidence in Petronas’ credit strength, which was recently affirmed at A2 by Moody’s and A- by S&P, both with stable outlooks,” it said.

Petronas said the issuance represents its return to the international US dollar bond markets since its US$5 billion multi-tranche offering in March 2015, and is part of the ongoing prudent capital management efforts that also effectively extend its debt maturity profile.

BofA Securities and Citigroup acted as joint global coordinators and joint bookrunners, together with HSBC, Maybank and MUFG as joint bookrunners.
 

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