There is a striking contrast between the renewed turmoil in European bond markets overnight, as it became apparent that the European Union hasn’t been able to reach any agreements on responding to the Greeks revolt against austerity or shoring up the eurozone banks, and announcements from two major Australian resource groups today.
Against the backdrop of European investors pouring money into German bonds in a scramble for safety, the announcements that BHP Billiton has raised €2 billion ($A2.6 billion) and the Origin Energy-led Australia Pacific LNG $US8.5 billion in project funding for its Queensland coal seam gas project is striking.
BHP priced a two tranche euro bond issue overnight, raising €1.25 billion ($A1.6 billion) at 2.125 per cent with an issue that matures in 2018, and €750 million ($A1 billion) at 3 per cent maturing in 2024.
Origin said APLNG had signed definitive project finance agreements with the Export-Import Bank of the US and a syndicate of domestic and international commercial banks. The agreements run for 16 and 17 years respectively. China’s Export-Import Bank has signed a commitment letter for its share of the facilities.
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Business Spectator
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