KUALA LUMPUR: Petroliam Nasional Bhd’s (PETRONAS) US$6 billion multi-tranche senior bond offering was oversubscribed by 6.2 times, reflecting the market’s confidence in the oil and gas firm’s credit strength which was recently affirmed at A2 by Moody’s and A- by S&P, both with stable outlooks.
The US$6 billion comprised of US$2.25 billion 10-year, US$2.75 billion 30-year and US$1 billion 40-year conventional notes.
“The proceeds will be used by the firm, or its subsidiaries and associated companies, for refinancing, capital expenditures, working capital and general corporate purposes,” it said in a statement.
PETRONAS noted the issuance represents its return to the international US dollar bond markets since its US$5 billion multi-tranche offerings in March 2015 and is part of the on-going prudent capital management efforts which also effectively extend its debt maturity profile.
The 10-year conventional notes were priced 290 bps over the 10-year treasury to yield 3.65 per cent, the 30-year conventional notes were priced to yield 4.55 per cent and the 40-year conventional notes were priced to yield 4.80 per cent.
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, it said. -Bernama
