Petronas rakes in $1b in U.S. capital marts

Petronas rakes in $1b in U.S. capital marts

KUALA LUMPUR (AFP): Malaysia's national oil firm Petroliam Nasional Bhd. (Petronas) announced yesterday it had raised US$1 billion in the U.S. capital markets following a road show in six cities in the United States.

The money was raised through yesterday's offer of $375 million of 7.125 percent notes due in 2005, and $625 million of 7.75 percent bonds due in 2015 in the deal which originally aimed to raise $750 million.

"But after a successful road show, meeting with many investors in six cities across the U.S., the deal was increased to $1 billion due to significant demand for the issue in the market," a Petronas spokesman said.

A Petronas statement said the transaction represented the largest underwritten offering ever completed in the Yankee market under Rule 144A of the 1933 U.S. Securities Act.

CS First Boston acted as lead manager for the issue with international merchant banking groups Lehman Brothers, Merrill Lynch and Salomon Brothers acting as co-managers, Petronas said.

The moved marked the second time Petronas had issued bonds in the Yankee market, after it raised $500 million in its first offering in the United States in 1993.

Yesterday's bonds are rated A1/A by Moody's Investors Service and Standard and Poor's respectively.

The proceeds from the latest offering would be used to partially fund the construction of Petronas' new sour crude oil refinery in southwestern Malacca state and its second fertilizer plant in eastern Sarawak state.

Petronas last month reported a 12.9-percent increase in profits from a year earlier in the year to March of 7.1 billion ringgit ($2.8 billion).