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Chipmaker Intel said to be planning debut European bond offering

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Intel Corp is planning to sell its first bonds in Europe, according to a person familiar with the matter.

[LONDON] Intel Corp is planning to sell its first bonds in Europe, according to a person familiar with the matter.

The world's largest chipmaker plans to sell notes in euros, pounds, or both, said the person, who asked not to be identified because they're not authorized to speak publicly.

Barclays Plc and JPMorgan Chase & Co are arranging investor meetings from Wednesday, the person said.

Intel, which on Monday agreed to buy Altera Corp for US$16.7 billion, is the latest American firm planning to raise funds in Europe, where it remains cheaper to borrow than in the US Companies including Coca-Cola Inc and McDonald's Corp have sold a record 64.5 billion euros (S$95.47 billion) in bonds this year, according to data compiled by Bloomberg.

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Officials at Santa Clara, California-based Intel couldn't be reached for comment on the sale outside office hours.

XPO Logistics Inc announced plans on Monday to sell US$2 billion of bonds, including its first notes in pounds and euros. Mohawk Industries Inc. is selling euro bonds, its first offering in the single currency, according to a separate person familiar with the matter.

The average yield on the euro bonds of investment-grade companies is 1.10 per cent and 3.10 per cent for those denominated in pounds, Bank of America Merrill Lynch data show. That compares with 3.17 per cent for similarly rated dollar- denominated securities, according to the data.

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