Abu Dhabi's International Petroleum Investment Co (Ipic) paid a premium on its existing debt to raise $4.4 billion in bonds as turmoil in the Middle East drives up corporate borrowing costs.
Ipic priced €1.25 billion ($1.7 billion) of five-year notes to yield 5.032 per cent on Wednesday, 108 basis points more than existing dollar-denominated five-year bonds that mature a year earlier. The state-owned investment company may use the money for its €4 billion offer for the shares it doesn't already own in Spanish oil company Cia. Espanola de Petroleos SA, Fitch Ratings said on March 7.
"It's a strange time to go to the markets in part because of the Middle East crisis but I suppose they really had very little choice," Jim McCormick, the London-based head of fixed- income research for Europe, Middle East and Africa at Nomura Holdings Inc said in an interview in Dubai.
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