COSL Celebrates Corporate Bond Issue with Feast
China Oilfield Services Limited ("COSL" or the "Group"; stock code: 2883.HK) announced its successful issuance of 2007 COSL corporate bonds. With the approval by the shareholders of COSL at an extraordinary general meeting and upon receiving approval from the National Development and Reform Commission through the notice Fa Gai Cai Jing  No. 973, COSL successfully issued the 2007 corporate bonds (the "Bonds") of COSL during the period from 14 May to 18 May 2007. A thanksgiving feast for the successful issue of Bonds was held in Beijing on May 22.
The aggregate amount of the Bonds was RMB1.5 billion. The Bonds have a term of 15 years and carried a fixed interest rate. The coupon rate is 4.48% per annum, with interests paid in annual arrears. Principal will be repaid with the last installment of interest. The proceeds from the bonds issue will be used by COSL for the building and upgrading of COSL drilling rigs, the purchase and building of chemical carrier and working vessels, the upgrading of 8-streamer seismic vessels and building of liftboats. Upon the completion of these projects, the capacity of COSL in drilling, well service, marine support & transportation service and geophysical service will be enhanced, thus promoting the steady grow of China Offshore oil output. COSL can expand overseas business effectively with its global competitiveness further strengthened. Also, the issue of Bonds will optimize the capital structure of COSL through reduction of financing costs and therefore further enhance the integrated ability of COSL.
The joint lead managers of the Bonds issue are BOCI Securities Limited and CITIC Securities Company Limited. In order to protect the interests of investors during the capital guaranteed period, the Beijing branch of China Construction Bank Corporation has issued a joint and irrevocable guarantee for the performance of the Bonds, which further enhanced the quality of the Bonds. The Bonds and COSL, the issuer, have been accredited respectively the highest credit rating and the highest corporate rating of AAA by Da Gong Global Credit Rating Co. Ltd.
Mr. Zhong Hua, Executive Vice President and CFO of COSL, who was also the host of the thanksgiving feast, said:
"The successful issuance of the Bonds created a strong support for the financing of COSL. On the one hand, it rationalized the Group's liability structure and on the other hand, reduced its integrated financing costs, both being advantageous for attainment of the positive financing status investment cycle. Corporate bond issue is one of the strategic approaches in COSL's course of development and reform. Taking advantage of our positive brand image, we will proactively extend our reach in the national bond market so as to make greater contribution to the development of the market. We will also continue to enhance profitability through our endeavor to expand business and improve quality control, striving to create greater return for our shareholders."
Mr. Yuan Guangyu, CEO and President of COSL, who also attended the thanksgiving feast, said:
"Capitalizing on the market opportunities, COSL made a visionary decision of expanding the scale of capital investment, enabling the Group to procure its early production capacity and achieve remarkable operation efficiency. The benefits are fully reflected in the year 2007 when, including, 941 drilling rigs had operated for a year achieved optimized operation status, Gulf Of Mexico well workover rig will commence operation in mid 2007, the building of 4 chemicals carriers completed and commenced operation, COSL718 seismic vessels which had operated for a year recorded significant growth in 3D data collection and processing.
"Saved as the completed and progressing capital investments, COSL will continue to expand its investment scale in the future years, ensuring the Group to meet the business requirements under the continuous growing domestic and international markets. COSL will further strengthen its equipments, personnel and technology so as to achieve a strong sustainable growth.
"Leveraging on the continuous development of the market, COSL will be able to achieve the strategic development objective of "developing itself as a powerful international oilfield services company and becoming one of the multi-national oilfield services corporations with large scale operation and outstanding results."
COSL is the leading integrated oilfield services provider in the offshore China market. Its services cover each phase of offshore oil and gas exploration, development and production. COSL's four business segments are drilling services, well services, marine support and transportation services and geophysical services.
- China's COSL Completes 3D Seismic Ops in North Barents Sea (Aug 10)
- COSL Completes its First Exploration Assignment in the Far East (Aug 08)
- COSL Appoints Qi Meisheng as CEO and President, Replaces Li Yong (Jun 16)