Shell Raises $2.5 Billion of Debt in First Bond Sale Since 2010

Royal Dutch Shell Plc (RDSA), Europe’s largest oil producer, raised $2.5 billion with its first bond offering since 2010 in a three-part sale.

The company issued $1 billion of 1.125 percent, five-year notes that yield 50 basis points more than similar-maturity Treasuries, an equal portion of 2.375 percent, 10-year bonds with a 70 basis-point spread, and $500 million of 3.625 percent 30-year debt that pays 82 basis points more than benchmarks, according to data compiled by Bloomberg.

The company’s Shell International Finance unit, which last issued dollar obligations due in three decades in March 2010, will use proceeds for general corporate purposes, The Hague- based company said today in a regulatory filing.

Shell’s longest outstanding maturity, its $1 billion of 5.5 percent bonds due March 2040, traded at 130.4 cents on the dollar to yield 3.73 percent at 3 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The company’s $750 million of 5.2 percent dollar-denominated notes maturing March 2017 traded at 118.4 cents with a 1.1 percent yield Aug. 10.

Goldman Sachs Group Inc. and Morgan Stanley managed the offering.

To contact the reporter on this story: Charles Mead in New York at cmead11@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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