UPDATE: CNPC Tightens Bond Spreads On $1.15 Billion US Deal
April 12 2012 - 12:51PM
Dow Jones News
NEW YORK (Dow Jones)--China National Petroleum Corp. is selling
$1.15 billion of bonds in a two-part sale to the U.S. debt markets
Thursday.
The state-owned company is offering investors 1.85 percentage
points over Treasurys on a five-year tranche and 1.90 points over
Treasurys on a 10-year tranche, according to launch terms. The
offered yields on both maturities have dropped 0.20 points from
original pricing guidance, indicating strong demand.
An investor familiar with the deal said underwriters received
more than triple the needed amount to sell the bonds.
This is only the second CNPC deal ever in the U.S. markets,
following a $1.85 billion deal in April 2011, according to
Dealogic.
Citigroup Inc. (C) and ICBC International Holdings, a Hong Kong
investment-banking subsidiary of Industrial & Commercial Bank
of China Ltd. (IDCBY, 601398.SH), are lead bookrunners on the
transaction, with support from at least nine other banks.
The bonds are rated A1 by Moody's Investors Service and an
equivalent A-plus by Standard & Poor's and Fitch Ratings.
S&P noted its rating reflects the "extremely high"
likelihood that the government of China would provide timely and
sufficient support in the event of financial distress.
CNPC is one of three wholly state-owned oil companies in
China.
-By Patrick McGee, Dow Jones Newswires; 212-416-2382;
patrick.mcgee@dowjones.com
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