21 Jan 2010 10:22

TNK-BP registers $8-bln Eurobond program

MOSCOW. Jan 21 (Interfax) - TNK-BP has registered a Eurobond program amounting to $8 billion, the Russo-British oil company said in a draft memorandum for a new Eurobond placement.

The bonds will trade on the Luxembourg exchange.

TNK-BP will launch a Eurobond road show on Friday, which will last until the middle of next week. Royal Bank of Scotland, Barclays Capital and Calyon have been mandated to arrange the offering.

The proceeds from the Eurobond issue will be used to finance ongoing operations and to refinance debt.

The company decided to place Eurobonds because "this market currently has favorable price parameters and there is demand for paper from top-tier companies like TNK-BP, which has ratings from three agencies," the company told Interfax yesterday.

A source at a Western investment bank said TNK-BP might place both five-year and 10-year bonds. VTB Capital analyst Mikhail Galkin said the company could count on yields of 6.5%-7% for five-year bonds and 7.5%-7.75% for 10-year.

In July 2009, TNK-BP held a non-deal road for Eurobonds but did not place the issue. Barclays Capital and RBS organized meetings then with investors.