PETRONAS successfully priced a US$6 bil multi-tranche senior bond offering, comprising US$2.25 bil 10-year, US$2.75 bil 30-year and US$1 bil 40-year conventional notes.
The 10-year conventional notes were priced 290 bps 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 was robust demand for the bonds with the order books reaching US$37 bil 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 outlook.
The issuance represents Petronas’ return to the international US dollar bond markets since its US$5 bil multi-tranche offering in March 2015, and is part of the on-going prudent capital management efforts which also effectively extend its debt maturity profile.
The proceeds will be used by Petronas or its subsidiaries and associated companies, for refinancing, capital expenditure, working capital and general corporate purposes.
BofA Securities and Citigroup acted as joint global coordinators and joint bookrunners, together with HSBC, Maybank and MUFG as Joint Bookrunners. — April 15, 2020, Bernama
