Bloomberg News

BP Said to Raise $3 Billion From First Euro Bonds in Nine Months

February 13, 2012

Feb. 13 (Bloomberg) -- BP Plc, Europe’s second-largest oil company, plans to raise 2.5 billion euros ($3.3 billion) from its first bond sale in the currency in nine months, according to a banker involved in the transaction.

BP will price its 1.25 billion euros of 2016 bonds to yield 78 basis points more than the benchmark swap rate, which compares with the 72 basis-point spread on its existing notes maturing in June of the same year, according to data compiled by Bloomberg. The London-based company is selling its 2019 notes at 103 basis points over swaps, compared with the spread of 101 on its outstanding June 2020 bonds.

Sheila Williams, a spokeswoman for BP in London, said the sale’s proceeds would be used for general corporate purposes, without being specific or commenting on the deal terms.

BP is returning to the euro bond market for the first time since May 26, when it raised 1.5 billion euros, Bloomberg data show. BNP Paribas SA, Deutsche Bank AG, Lloyds Banking Group Plc, Banco Santander SA and Societe Generale SA are managing the new deal, said the banker involved, who declined to be identified because the terms are private.

--With assistance from Brian Swint in London. Editors: Paul Armstrong, Andrew Reierson

To contact the reporters on this story: Esteban Duarte in Madrid at eduarterubia@bloomberg.net; Ben Martin in London at bmartin38@bloomberg.net

To contact the editor responsible for this story: Paul Armstrong at Parmstrong10@bloomberg.net


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