China National Offshore Oil Corporation or CNOOC, has appointed Bank of China, Citigroup, Credit Suisse and Goldman Sachs as joint global co-ordinators for an upcoming jumbo offering, on which marketing is expected to begin as early as next week.
The SEC-registered bonds can be issued in both US dollars and euros - a format similar to that on Sinopec’s US$6.4bn US dollar and euro notes priced on Tuesday.
The last time CNOOC visited the offshore bond markets was in April 2014, when it printed a US$4bn three-tranche issue at tenors of three, 10 and 30 years.
The US$2.25bn 10-year was then recognised as the largest single portion on record from a PRC issuer.
CNOOC is rated Aa3/AA-/A+.
Moody’s, which this week affirmed its Aa3 rating, with a stable outlook, said a drop in oil prices would lower profits and cash flow.
That impact, however, will be limited on the back of cash and financial assets worth Rmb24.6bn at the holding company level, to cover debt as of June 2014. There is also central government support.
