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British oil major BP raises $12 bn in debt: Report
Reuters
Last Updated IST
 British energy giant BP. Credits: AFP Photo
British energy giant BP. Credits: AFP Photo

British oil major BP Plc raised $12 billion of debt with equity-like features, taking advantage of low-interest rates to fortify its balance sheet, the Financial Times reported on Wednesday.

The report of the fundraising comes days after BP decided to write off up to $17.5 billion from the value of its assets, betting the COVID-19 crisis would pressure energy demand and accelerate a shift away from fossil fuels.

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The oil company raised $5 billion, 4.75 billion euros ($5.34 billion) and 1.25 billion pounds, the FT said, adding that BP locked in annual interest rates as low as 3.25% on some of its new euro notes.

BP had previously never raised money by issuing hybrid bonds, which place less of a strain on the balance sheet because the principal never has to be repaid, the newspaper said.

BP did not immediately respond to a Reuters request for comment. ($1 = 0.8893 euros)

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(Published 18 June 2020, 07:49 IST)