BG Group Adds USD500 mn to Hybrid Bond Issuance
OREANDA-NEWS. June 25, 2012. BG Group announced it has successfully added a US dollar denominated hybrid bond to the long-dated sterling and euro denominated hybrid bonds issued earlier this week. The size of the new issue is USD 500 million, taking the total raised across all three currencies to USD 2.07 billion, reported the press-centre of BG Group.
The new bonds, which have a coupon of 6.5%, have the same principal terms and conditions as the sterling and euro issues and mature on the same date in 2072. Settlement will occur 27 June 2012, subject to standard settlement conditions.
The hybrid bonds are long-dated, subordinated securities which are treated partially as equity by credit rating agencies, further strengthening and diversifying BG Group's balance sheet. BG Group has a right to repay the bonds on certain dates before maturity, the first occurring in November 2017.
The hybrid bond issues are another step in the execution of BG Group’s funding plan to support the Group’s global investment programme, including in projects in the Santos Basin, offshore Brazil and onshore in Queensland, Australia.
BG Group Executive Director & Chief Financial Officer Fabio Barbosa said: "Support for our hybrid bond programme has been very pleasing and represents a clear endorsement of our global investment strategy. The US dollar offer, like the sterling and euro issues earlier this week, was oversubscribed. We were particularly pleased by the level of interest from investors in Asia, which provides further geographic diversity to our sources of funding as we pursue the significant growth opportunities in our portfolio".