PTT flattens curve with $1.1 billion dual-tranche bond

Bring on duration: PTT's 10- and 30-year bonds price at the same spread reflecting strong investor demand for long bonds.

Thai oil and petrochemical company PTT issued a rare $1.1 billion dual-tranche bond late last week, which underscored once again the demand for long bonds. With rates near or at all-time lows, investors are looking for ways to pick up yield and long bonds allow them to do just that.

It is usually more expensive for companies to issue long-dated bonds, but PTT’s $500 million 10-year and $600 million 30-year bonds both priced at the same spread at Treasuries plus 160bp, making it one of the few issuers that has managed to do so.

In April, Cnooc priced its $2 billion dual-tranche 10- and 30-year bonds...

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