Connect with us

Hi, what are you looking for?

Stock

Qatar Petroleum hires banks for four-tranche jumbo bond sale

Stock Markets20 minutes ago (Jun 28, 2021 09:51AM ET)

(C) Reuters. FILE PHOTO: The logo of Qatar Petroleum is seen at its headquartes in Doha, Qatar, July 8, 2017. Picture taken July 8, 2017. REUTERS/Stringer/File Photo

By Yousef Saba

DUBAI (Reuters) -Qatar Petroleum has hired a group of banks to arrange a four-tranche issuance of U.S. dollar-denominated bonds, a document showed, for what will be its debut public bond sale months after it signed a contract to boost its liquefied natural gas output.

The bond sale will comprise conventional tranches of five, 10 and 20 years, as well a 30-year Formosa portion, the document from one of the banks on the deal and reviewed by Reuters showed.

Formosa bonds are sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.

The document did not give any indication on the size of the deal but sources have previously told Reuters the planned debt sale could raise up to $10 billion.

Qatar Petroleum (QP), one of the world’s top liquefied natural gas (LNG) suppliers, hired Citi and JPMorgan (NYSE:JPM) to coordinate the issue.

They, along with BofA Securities, Deutsche Bank (DE:DBKGn), Goldman Sachs (NYSE:GS), HSBC, MUFG, QNB Capital and Credit Suisse (SIX:CSGN), will arrange investor calls starting on Monday.

Fitch Ratings assigned QP a long-term issuer default rating of AA- with a stable outlook on Monday, which it said was “constrained by that of sole shareholder – Qatar (AA-/Stable) – given strong links between the company and the sovereign”.

“Fitch assesses the Standalone Credit Profile (SCP) of QP at ‘aa+’, which is supported by the large scale of its LNG franchise, low production costs, large reserve base and conservative leverage,” Fitch said, adding QP operations’ focus on gas “makes it better placed for energy transition than other oil and gas majors.”

QP’s fundraising comes as energy companies in the region seek different means to raise cash after they were hurt last year by the double shock of the COVID-19 pandemic and oil prices collapsing.

QP signed a contract in February for the first phase of its North Field LNG expansion project, which aims to boost Qatar’s LNG output by 40% a year by 2026.

Fitch said key constraints on QP’s rating include completion risk for large capital expenditure projects related to increasing LNG production, as well as political risk.

Qatar Petroleum hires banks for four-tranche jumbo bond sale

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Stock

Stock Markets25 minutes ago (Jul 16, 2021 05:46PM ET) (C) Reuters. FILE PHOTO: Johnson & Johnson’s Neutrogena Cool Dry Sport sunscreen, which is part...

Tech

Builders, creators and developers, this one’s for you! TechCrunch has always been about discovering fresh solutions and shining the light on exciting, new products...

Disclaimer: Wisegazette.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Wise Gazette. All Rights Reserved