Exxon Mobil Corp on Monday raised US$9.5 billion in new debt, with the largest U.S. oil producer seeking to bolster its finances while debt markets remain open to new deals.
Exxon paid a lower price to borrow than it did in a similar debt deal almost four weeks ago, a sign of how investor confidence is gradually returning after a rout in energy prices and a stock market collapse fueled by the coronavirus outbreak.Nevertheless, borrowing costs for Exxon were still higher than prior to the coronavirus outbreak.
In an example of how the company's borrowing costs have come down in recent weeks, it priced a 10.5-year bond worth US$2 billion at a 185 basis-point premium to U.S. Treasuries with a 2.61per cent yield. On March 17, Exxon sold US$2 billion in debt with a 10-year duration where the premium to U.S. Treasuries was 240 basis points and the yield was 3.482per cent.
The logic behind Exxon's deal was to stock up further on cash while the market is still open to issuers of new debt, according to a person familiar with the matter.
Italia Ultime Notizie, Italia Notizie
Similar News:Puoi anche leggere notizie simili a questa che abbiamo raccolto da altre fonti di notizie.
Fonte: ChannelNewsAsia - 🏆 6. / 66 Leggi di più »