Shell Sells $1.75B, Two-Part Debt Deal



Royal Dutch Shell PLC sold $1.75 billion in a two-part deal Thursday.

The three- and 10-year bonds were sold at 0.30 and 0.75 percentage point over comparable Treasurys, respectively, to yield 0.633% and 2.363%.

A term sheet doesn't indicate how Shell, one of the world's largest oil-and-gas companies by market capitalization, will use the proceeds. But Shell says in the bond prospectus that it is expanding its gas-based business through investment in liquefied-natural-gas and gas-to-liquids projects. In 2011, for instance, it made investments with a partner in Qatar.

The bonds are being sold by a financing arm, Shell International Finance BV, and are "unconditionally guaranteed" by the parent company. Shell last tapped the market in August, when it sold $2.5 billion worth.

The bonds are expected to be rated Aa1 by Moody's Investors Service and AA by Standard & Poor's Ratings Services.

Barclays and Goldman Sachs Group were lead underwriters.



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