BP Raises $3 Billion in Dollar Bonds With First Sale This Year

BP Plc sold $3 billion of dollar-denominated bonds in its first offering this year.

BP Capital Markets, a unit of Europe’s second-largest oil company, issued $250 million of five-year, floating rate debt to yield 51 basis points more than the three-month London interbank offered rate, $1.25 billion of 1.375 percent, five-year notes to pay 68 basis points more than similar-maturity Treasuries and $1.5 billion of 2.75 percent, 10-year securities at a relative yield of 108 basis points, according to data compiled by Bloomberg.

The bonds may be rated A2 by Moody’s Investors Service, according to a person familiar with the transaction. The floating portion was added after BP began marketing the sale today, said the person, who asked not to be identified because terms aren’t set.

The company last sold debt in November, issuing $1 billion each of 0.7 percent, three-year securities at a relative yield of 35 basis points; 1.375 percent, five-year debt at 65 basis points; and 2.5 percent, 10-year bonds at 85, Bloomberg data show.

The bonds due November 2022 traded at 98.723 cents on the dollar to yield 2.65 percent on May 3, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Royal Dutch Shell Plc is Europe’s biggest oil company.