Petroliam Nasional Berhad (Petronas) has priced a US$3 billion dual-tranche senior bond offering, comprising US$1.25 billion 10.75-year and US$1.75 billion 40-year conventional notes.
The 10.75-year senior notes were priced at 92.5 basis points (bps) over the 10-year US Treasury yield for a coupon of 2.480 per cent, and the 40-year senior notes were priced 115 bps over the 30-year US Treasury for a coupon of 3.404 per cent.
Supported by strong investor demand, Petronas was able to upsize the transaction size to $3 billion based on total demand of US$7.4 billion – more than 2.46 times the enlarged issuance size
The bonds were distributed to top tier international investors across the globe – with the 10.75-year distributed to investors in Asia (48 per cent), USA (43 per cent), and Europe and the Middle East (9 per cent); the 40-year distributed to investors in USA (46 per cent), Asia (40 per cent), and Europe and the Middle East (14 per cent).
This issuance follows the US$600 million bond offering issued by Petronas Energy Canada Ltd. and guaranteed by Petronas in March 2021, and the previous US$6 billion multi-tranche offering in April 2020.
Use of proceeds will be for debt refinancing and general corporate purposes, thereby further optimising the balance sheet and extending Petronas’ debt maturity profile.
