BP is raising £400m to bolster its balance sheet
Oil major BP wants to raise £400m to shore up its balance sheet which has been battered by low oil prices.
BP said today it will issue cash-settled convertible bonds as part of its regular debt issuance process, with the proceeds being used for "general corporate processes".
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"This is hardly a surprise and probably a move to shore up the balance sheet ahead of the potential market volatility caused by the Brexit referendum," analysts at Cenkos Natural Resources wrote in a note.
It came as BP announced the sale of 11.5 per cent of its 71 per cent stake in lubricants maker Castrol India that was held by Indian subsidiary Castrol.
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BP shares closed down 2.36 per cent to 356p per share in London this afternoon.
Last month, BP reported an 80 per cent fall in first quarter profits as weak oil prices ate into its revenue. The black stuff tumbled from more than $110 per barrel in the middle of 2014 to below $28 in January.