Shanghai-listed China Oilfield Services (CSCL) announced on 20 July that its subsidiary COSL Singapore Capital will issue Euro Medium Term Notes (EMTN) to raise USD3.5 billion from professional investors.
Notes issued under the EMTN Programme may be denominated in any currency, stated the company in its filing to the Shanghai Stock Exchange, and there will be no public offering of the notes in Hong Kong, the United States or any other jurisdiction.
The Hongkong and Shanghai Banking Corporation (HSBC) has been appointed as arrangers, and Australia and New Zealand Banking Group (ANZ), BOCI Asia, Citigroup Global Markets, Credit Suisse Securities (Europe), DBS Bank, Goldman Sachs (Asia), Goldman Sachs (Singapore), J.P. Morgan Securities, Standard Chartered Bank and the Hong Kong branch of UBS have been appointed dealers for the issuance of the notes.
The fund raised will be used for general working capital.
China Oilfield Services warned that it expects net profit to decline by approximately 80% year-on-year for the first half of 2015, since the sluggish oil prices continued in the second quarter of 2015, which led to lower utilization of its vessels. The company also had to cut prices of its services. The company recorded net profit of CNY4.4billion (USD709 million) for the first half of 2014.