PETRONAS has successfully raised US$5 billion through a multi-tranche bond offering, consisting of US$1.6 billion for 5.75 years, US$1.8 billion for 10 years, and US$1.6 billion for 30 years.
The bonds have received an extraordinary response from global investors, reflecting strong confidence in the company’s financial position and performance.
The 5.75-year bonds carry an interest rate of 4.95%, the 10-year at 5.34%, and the 30-year at 5.848%.
Due to demand, PETRONAS was able to tighten pricing by 30-35 basis points (bps) from initial guidance and increase the total issuance from US$3 billion to US$5 billion.
This marks PETRONAS’s return to the international bond market since its last US$3 billion issuance in April 2021. It is also the largest oil and gas bond issuance from Asia since PETRONAS’ US$6 billion transaction in 2020.
Investor interest was strong across various sectors, including fund managers, banks, insurance companies, pension funds, and government institutions.
The 5.75-year bonds saw 60% demand from fund managers, while the 10-year and 30-year bonds were backed by 62% and 71% fund managers, respectively.
JP Morgan and Morgan Stanley acted as Joint Global Coordinators, with HSBC, Maybank, and MUFG as Joint Bookrunners for the offering.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
