Cnooc raises first $2bn dual-tranche deal

China’s largest offshore oil and gas producer has stunned global markets with a $2 billion equivalent dual-tranche bond – the first from a Chinese company.
The proceeds of the deal will be used partially to finance Cnooc's acquisition of certain interests in Queensland Curtis LNG project from BG Group.
The proceeds of the deal will be used partially to finance Cnooc's acquisition of certain interests in Queensland Curtis LNG project from BG Group.

A subsidiary of Cnooc, the largest offshore oil and gas producer in China, on Thursday became the first mainland group to raise a dual-tranche senior unsecured fixed-rate note, launching a debut in European markets that diversified its fundraising efforts.

The deal by Cnooc Curtis Funding No. 1 was split into a $1.3 billion 10-year tranche with coupon of 4.5% and 500 million $674 million seven-year tranche with coupon of 2.75%, according to sources.

Global investors welcomed the deal notably the European market and were keen to grab a slice of the credit for diversification purposes. Both the dollar- and euro-denominated tranches were oversubscribed by approximately six and...

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