BG Group announced the issue of €1 billion of euro-denominated bonds (approximately $1.37 billion).
The seven-year bonds are due 16 November 2018 and pay a coupon of 3%.
The bonds have been issued by BG Energy Capital plc, a wholly owned subsidiary of BG Group plc, and are guaranteed by BG Energy Holdings Limited. They are expected to be rated A, A2 and A by Fitch, Moody’s and Standard & Poors respectively.
Settlement of the offering will occur on 16 November 2011, subject to customary conditions.
The bond issue was managed by a group of banks comprising Credit Agricole, Deutsche Bank, HSBC, Lloyds Bank and Société Générale.
BG Group Chief Financial Officer, Fabio Barbosa said: “ BG Group has again successfully accessed the international debt markets, this time with euro-denominated bonds. A high quality and substantially oversubscribed order book has once again demonstrated our good standing in the international debt markets and provides a clear endorsement of our plans by investors.
“ Following the success of our $3 billion US and £750 million sterling bond issues last month, we have again taken the opportunity to access the debt capital markets to lock in attractive long-term funding costs in the current low interest rate environment. These bond issues, totalling some $5.6 billion, combined with our existing committed facilities of $5.75 billion, provide further capacity for financing our global growth agenda .”
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Source: BG, November 10, 2011