BP to sell $3.5bn in bonds

BP signalled a return to “business-as-usual” after the Gulf of Mexico tragedy, with plans to sell up to $3.5bn (£2.2bn) in new bonds just three days before Bob Dudley is set to take over the chief executive post.

The oil major’s funding arm, BP Capital Markets, is selling five and ten-year bonds, the first such sale since August 2009 when it sold $2bn.

BP had originally intended to raise between $2bn and $3bn from the bond sale, but due to over-subscription, that figure has risen to $3.5bn.

A $2bn, five-year tranche was offered at 1.95 percentage points over similar-maturity Treasurys and a $1.5bn chunk of 10-year bonds was offered at 2.10 percentage points over Treasurys. Barclays Capital, BNP Paribas, Royal Bank of Scotland, Citigroup and Mizhuo Securities are leading on the bond sale.

The bond sale is the first since last August.