Santos raises $1.3 billion via 10-year US bonds

The news: Oil and gas major Santos is raising debt through a US dollar-denominated 10-year bond offering.

The numbers: Santos said it has successfully priced the bond offer to raise USD850 million ($1.32 billion). The notes, to be issued by Santos Finance, will pay a fixed-rate coupon of 6.875% per annum for a period of 10 years, maturing in Sept 2033.

The context: The company said settlement of the bonds will occur on 19 September, with the proceeds to be used for general corporate purposes. Santos CEO Kevin Gallagher said the transaction demonstrated continuing strong support from capital markets and would ensure the company’s balance sheet is well-positioned to deliver on strategy.