"International Petroleum Investment Co plans to sell bonds to repay part of a $2bn loan due in September, taking advantage of narrowing spreads between its debt and US Treasury notes that reached new lows last month.
The yield on the Abu Dhabi state-owned company’s 4.875% bonds due in May 2016 dropped to a record 1.285% on May 2, according to data compiled by Bloomberg. The bonds’ spread over five-year Treasuries narrowed on May 20 to 13 basis points, the lowest since the corporate securities started trading in March 2011, the data show. Amid the falling borrowing costs, company officials said last month they want to refinance.
“If you see that the market is willing to lend and you’re going to get lower rates, it makes sense to sell bonds,” Amol Shitole, an analyst with SJS Markets in Bangalore, India, said by telephone May 28. “There’s a window in the market now to take advantage of lower borrowing costs.”"
'via Blog this'
No comments:
Post a Comment