Petronas to issue bond

Petronas to issue bond

KUALA LUMPUR (AFP): Malaysian national oil company Petroliam Nasional Bhd (Petronas) Saturday confirmed it would issue a third Yankee bond to raise funds for its projects in the downstream sector.

Petronas president Mohd Hassan Marican said the bond would be issued at the end of this month or early October, following the firm's two previous successful issues in 1993 and 1995.

"The size of the bond will be determined later...if the price and the market response is good, we will take as much as we can," he was quoted as saying by Bernama news agency.

Two American financial institutions, CS First Boston and Solomon Brothers, have been appointed as joint lead managers for the issue, Mohd Hassan said.

He said Petronas was returning to the capital market to raise funds as it was the cheapest way to conduct such exercises.

"We will capitalize on the corporation's credit-worthiness and the support we have received from investors in our previous issues," he added.

Petronas in 1993 issued a 10-year Yankee bond for US$500 million and a $1 billion bond last year.