Royal Dutch Shell Plc  .com Rotating Header Image

Shell Issuing $1.75 Billion, Two-Part Debt Deal

John,
 
No idea what you make of this, but could it be that Shell runs out of some ‘small ready cash’ to invest, pay dividends and run operations??? It is now cheap to get money but one would expect that they would be able to finance everything themselves out of their cashflow?

November 29, 2012

By Patrick McGee

Royal Dutch Shell PLC is selling $1.75 billion in a two-part deal Thursday.

The three- and 10-year bonds are being offered at 0.30 and 0.75 percentage point over comparable Treasurys, respectively. At current rates, they would yield 0.64% and 2.37%.

A term sheet doesn’t indicate how Shell, one of the world’s largest oil-and-gas companies by market capitalization, will use the proceeds. But Shell says in the bond prospectus that it is expanding its gas-based business through investment in liquefied-natural-gas and gas-to-liquids projects. In 2011, for instance, it made investments with a partner in Qatar.

The bonds are being sold by a financing arm, Shell International Finance BV, and are “unconditionally guaranteed” by the parent company. Shell last tapped the market in August, when it sold $2.5 billion worth.

The bonds are expected to be rated Aa1 by Moody’s Investors Service and AA by Standard & Poor’s Ratings Services.

Barclays and Goldman Sachs Group are lead underwriters.

Write to Patrick McGee at [email protected]

Source

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Comment Rules

  • Please show respect to the opinions of others no matter how seemingly far-fetched.
  • Abusive, foul language, and/or divisive comments may be deleted without notice.
  • Each blog member is allowed limited comments, as displayed above the comment box.
  • Comments must be limited to the number of words displayed above the comment box.
  • Please limit one comment after any comment posted per post.