Petronas issues US$600mil seven-year bonds

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has issued a US$600 million single tranche seven-year bonds.

In a statement today, the national oil company said the issuance marked the first corporate bond issued by its subsidiary Petronas Energy Canada Ltd.

The bond were priced at 85 basis points (bps) over the seven-year US Treasury to yield 2.112 per cent.

Petronas said the offering was met with overwhelming demand from the market throughout the bookbuilding process, illustrating the market’s confidence in the company’s credit strength, on the back of its current ratings of A2 by Moody’s, A- by S&P and BBB+ by Fitch.

Petronas said the proceeds would be utilised by Petronas Energy to fund its continued development and production activities, debt refinancing and for general corporate purposes.

Petronas Energy focuses on the development and production of oil and natural gas in Canada.

Petronas said the notes were expected to settle on March 23 and would be listed on Hong Kong Stock Exchange.

BofA Securities acted as sole global coordinator, together with Citigroup, HSBC and ScotiaBank as joint bookrunners.

Source: NST