BG Group announced the issue of 1 billion euro of euro-denominated bonds (approximately $1.37 billion). The seven-year bonds are due November 16, 2018 and pay a coupon of 3%.
The bonds have been issued by BG Energy Capital plc, a wholly owned subsidiary of BG Group plc, and are guaranteed by BG Energy Holdings Limited. They are expected to be rated A, A2 and A by Fitch, Moody's and Standard & Poors respectively.
Settlement of the offering will occur on November 16, 2011, subject to customary conditions.
The bond issue was managed by a group of banks comprising Credit Agricole, Deutsche Bank, HSBC, Lloyds Bank and Société Générale.
BG Group Chief Financial Officer, Fabio Barbosa said, "BG Group has again successfully accessed the international debt markets, this time with euro-denominated bonds. A high quality and substantially oversubscribed order book has once again demonstrated our good standing in the international debt markets and provides a clear endorsement of our plans by investors.
"Following the success of our $3 billion US and £750 million sterling bond issues last month, we have again taken the opportunity to access the debt capital markets to lock in attractive long-term funding costs in the current low interest rate environment. These bond issues, totaling some $5.6 billion, combined with our existing committed facilities of $5.75 billion, provide further capacity for financing our global growth agenda."
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