Chinese energy giants in major fund raising

Sell a combined US$2.58 billion in bonds.

China National Offshore Oil Corporation (CNOOC) raised US$1.98 billion in the biggest debt offering in Asia outside of Japan since late May 22. China General Nuclear Power Corporation sold a US$600 million dollar-denominated bond with a maturity of five years.

CNOOC sold a US$1.3 billion, 10-year U.S. dollar bond at a yield of 4.5%, or 1.85 percentage points above the yield on the 10-year U.S. Treasury. The yield fell slightly in trade last Friday on strong demand in the secondary market. The group also sold a US$675 million Euro-denominated bond with a coupon of 2.75%.

Some of the proceeds will go to financing its acquisition of Project Curtis, a natural gas project in Australia.

Analysts said a total of US$5.9 billion was raised last week in bond sales denominated in dollars, euros and yen in Asia (excluding Japan), the highest since US$8 billion was raised last May 13.