CNOOC to raise funds through overseas bond issue

CNOOC (CEO.NYSE, 0883.HK) said it will issue bonds to international institutional investors to raise funds for "general corporate purposes," the Wall Street Journal reported. The company will issue an as-yet undisclosed amount of 10- and 30-year bonds in what analysts said was a move to shore up capital following significant outlays. In November, CNOOC said its Bridas joint venture with Argentina’s Bridas Energy Holdings had bought BP’s (BP.NYSE, BP.LSE) 60% stake in Pan American Energy for US$7.06 billion, giving it complete ownership of the Latin American energy firm. Sources familiar with that deal said CNOOC would fund it with the help of bank loans of up to US$1.5 billion in Hong Kong. CNOOC is the latest in a string of Chinese firms to attempt to raise funds through the overseas bond markets as domestic liquidity is tightened.