Tags: Shell | Bond | Sale | offering

Shell Plans Benchmark Offering With First Bond Sale Since 2010

Tuesday, 14 Aug 2012 10:19 AM

Royal Dutch Shell Plc, Europe’s largest oil producer, plans to raise funds with its first bond offering in two years by selling debt of five-, 10- and 30-year maturities.

The company’s Shell International Finance unit, which last issued dollar obligations due in three decades in March 2010, will use proceeds for general corporate purposes, The Hague-based company said in a regulatory filing.

The sale will be of benchmark size, typically at least $500 million, and the bonds may be rated Aa1 by Moody’s Investors Service, its second-highest grade, according to a person familiar with the offering who asked not to be identified because terms aren’t set.

Shell’s longest outstanding maturity, its $1 billion of 5.5 percent bonds due March 2040, traded at 132 cents on the dollar to yield 3.65 percent at 8:08 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The company’s 5.2 percent dollar- denominated notes maturing March 2017 traded at 118.4 cents with a 1.1 percent yield Aug. 10.

Goldman Sachs Group Inc. and Morgan Stanley are managing the sale, the person said.


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