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[KUALA LUMPUR] Petroliam Nasional Bhd, Malaysia's state- owned oil company, sold US$5 billion of dollar-denominated bonds Wednesday.
Petronas issued the debt in four parts, including a sukuk tranche, according to data compiled by Bloomberg. The longest- dated portion was US$1.5 billion of 4.5 per cent, 30-year bonds that yield 1.9 percentage points more than similar-maturity US Treasuries.
The energy company borrowed in dollars at a time when Malaysian issuers in the currency are the worst performers in Asia for the year. It also sold US$1.5 billion of 3.5 per cent, 10- year notes, US$750 million of 3.125 per cent, seven-year securities, and US$1.25 billion of five-year 2.707 per cent sukuk, according to data compiled by Bloomberg.
Petronas previously sold dollar-denominated bonds in August 2009, when it issued US$4.5 billion of securities, including US$3 billion of 5.25 per cent notes due in August 2019. Those securities were sold at a spread of 162.5 basis points, while the 10-year notes in Wednesday's issue paid a 150 basis-point premium. A basis point is 0.01 percentage point.
The August 2019 bonds yielded 2.85 per cent on Monday, according to Trace, the Financial Industry Regulatory Authority's bond-price reporting system.
Petronas is rated A1 by Moody's Investors Service, Bloomberg data show.