Sinopec's Bond Sale Breaks Record

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In a recent announcement, China Petroleum and Chemical Corporation has raised a total of US$3.5 billion in the second biggest dollar denominate bond sale in Asia outside of Japan. The sale's proceeds would be used by the region's largest refiner's expansionist goals overseas.

Sinopec's sale is broken down into US$750 million three year bonds at 1.25% coupon, US$1 billion five year bonds at 1.875% coupon, US$1.25 billion ten year bonds at 3.125% and US$500 million thirty year bonds at 4.25%.

Many Chinese firms are looking abroad for oil and gas investments to provide for the energy demands of the second largest economy in the world. There are more deals to come for Sinopec, as its parent China Petrochemical Corp had entered into a US$3 billion joint venture to replace the oilfields located in Colombia, Kazakhstan and Russia.

The Sinopec sale is the largest dollar offer in Asia outside Japan. According to data from Bloomberg, the Hutchison Whampoa Ltd sold a record US$5 billion worth of bonds in a three tier sale back in November 2003.

Tags
Debt, Sale, China

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