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NOT FOR DISTRIBUTION INTO THE UNITED STATES, CANADA, JAPAN, OR AUSTRALIA. NO OFFER OF SECURITIES IS BEING MADE PURSUANT TO THIS PRESS RELEASE.
Kuala Lumpur, 22 April 2021 – PETRONAS has successfully priced a US$3.0 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.
Key highlights of the transaction include:
- Lowest coupon and tightest issue spreads ever achieved by PETRONAS and any other Malaysian corporations in both the 10-year and 40-year bond tranches
- PETRONAS achieved final pricing of 42.5 bps and 40 bps lower than its initial price guidance for the 10.75-year and 40-year bond tranches, respectively. The yields achieved on both tranches were lower than PETRONAS’ existing secondary curve and borrowing costs
- The highly sought after 40-year bond tranche was the largest ever by an ASEAN issuer and priced at a mere 22.5 bps over the 10.75-year bond yield – a far tighter spread than that achieved by most international and ASEAN issuers
- 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.
BofA Securities and Citigroup acted as Joint Global Coordinators and Joint Bookrunners, together with HSBC, Maybank and MUFG as Joint Bookrunners.
Issued by:
Media Engagement Department
Group Strategic Communications
PETRONAS
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The distribution of this press release may be restricted by law and persons into whose possession this press release comes are required by the Joint Bookrunners and the Company inform themselves about, and to observe, any such restrictions.
No offer or invitation to acquire or exchange any securities is being made pursuant to this press release. This press release does not constitute an invitation to acquire any securities in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such invitation under applicable securities laws.
This press release is not an offer of securities for sale in the United States. The securities referred to herein have not been and will not be registered under the Securities Act, or the securities laws of any state of the United States or any other jurisdiction and may not be offered or sold in the United States absent registration under, or an applicable exemption from, or in a transaction not subject to, the registration requirements under the Securities Act and applicable state or local securities laws of the United States.
Any public offering of the securities referred to herein to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements.
