Date
21 July 2017
Despite low oil prices, Sinopec will benefit from its “very high strategic importance to China" as the country’s largest refiner, Moody's said. Photo: Bloomberg
Despite low oil prices, Sinopec will benefit from its “very high strategic importance to China" as the country’s largest refiner, Moody's said. Photo: Bloomberg

Sinopec plans US$3 bln bond offer to refinance debt

China Petroleum & Chemical Corp. (00386.HK, 600028.CN), which owns China’s largest oil refiner, is planning to sell US$3 billion of bonds in four parts to refinance debt.

Sinopec Group’s financing includes the sale of US$1 billion three-year bonds that may yield 1.2 percentage points more than similar-maturity US Treasuries, Bloomberg reported, citing an unnamed source.

It also includes U$400 million of 30-year bonds that may yield 4.25 percent.

Despite low oil prices Sinopec will benefit from its “very high strategic importance to China as the country’s largest refiner in terms of crude distillation capacity”,  Moody’s Investors Service said in a note published on Monday.

The ratings company graded the notes Aa3, the fourth-highest ranking.

Yields on dollar bonds sold by high-grade Asian borrowers have fallen from a more than two-year high of 3.6 percent in December to 3.12 percent, Bank of America Merrill Lynch indexes show.

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