Petronas Stated to Have Requested Banks for Greenback Bond Proposals

Petroliam Nasional Bhd has despatched requests searching for bankers’ proposals for a possible greenback bond providing, in response to folks aware of the matter, in what could be the Malaysian oil agency’s first such sale in over three years. 

Also called Petronas, the state-owned firm will rent funding banks within the coming weeks if it plans to go forward with a deal, stated the individuals who declined to be named as the knowledge is non-public, with out providing different particulars. Petronas didn’t reply to an emailed request searching for remark.

Petronas, which can face its greatest debt-maturity wall in 2025, has been absent from the greenback debt market because it offered a $3 billion dual-tranche bond in 2021. Its curiosity in a brand new providing additionally comes as danger premiums on Asia’s investment-grade greenback notes have dropped to close record-low ranges. 

- Advertisement -

The power agency and its items have mixed debt well worth the equal of greater than $22 billion, with the most important annual compensation of over $3.7 billion due subsequent yr, Bloomberg-compiled information present.

Petronas final month posted a 19 % decline in first-half internet earnings attributable to larger taxes and a shrinking of its asset base. Capital expenditure rose 20 % on yr throughout the identical interval, in response to an organization earnings presentation.

Greater capital funding in upstream reserves and new companies might weigh on Petronas’ bond spreads, Bloomberg Intelligence analyst Mary Ellen Olson wrote in a be aware earlier this month. Nonetheless, she sees Petronas as “a safehaven credit score” backed by sturdy liquidity and a monitor report of state help.

The Malaysian oil firm’s curiosity in elevating new debt comes as danger premiums on Asian high-grade greenback bonds have declined for 5 consecutive weeks, the most important such stretch since February. Consequently, yield spreads have narrowed to 78 foundation factors over comparable Treasuries, a contact above Could’s report low of about 75 foundation factors.

Generated by readers, the feedback included herein don’t mirror the views and opinions of Rigzone. All feedback are topic to editorial evaluate. Off-topic, inappropriate or insulting feedback will probably be eliminated.