Sinopec sells $6.4B in bonds, Asia's third-largest on record
Apr. 22, 2015 8:58 AM ETChina Petroleum & Chemical Corporation (SNPTY)SNPTYBy: Carl Surran, SA News Editor1 Comment
- Sinopec (NYSE:SNP) has raised $6.4B in a bond sale that ranked as Asia’s third-biggest on record, with some of the lowest borrowing costs ever for an Asian company.
- SNP was able to take advantage of low rates in Europe, borrowing at costs as low as 0.5% and 1% for its three- and seven-year bonds, totaling €1.5B ($1.6B); the timing was especially fortuitous for the company, as the benchmark 10-year German bund sank to a low of 0.07% Monday.
- The rest of the debt, sold in dollars with coupons between 2.5% and 4.1% and lengths up to 30 years, attracted more than $15B in subscriptions.
- SNP says it plans to use the proceeds to refinance existing debt and for general corporate purpose” of overseas businesses.