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.