Deals
1MDB Mess Clouds Petronas $7 Billion Debt Proposal
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Malaysia’s national oil company Petroliam Nasional Bhd is paying for troubles at a state investment fund.
The yield premium on Petronas’s 2022 U.S. dollar-denominated debt over Treasuries has surged 54 basis points in the last six months after the government said it wasn’t liable for 1Malaysia Development Bhd’s debt and the fund missed a loan payment. That was unfortunate timing for Petronas, which is planning its first dollar bond in five years to raise as much as $7 billion, according to people familiar with the matter.